News
EfTEN Capital earned EEK 4.3 million in profits in 2009
EfTEN Capital, an asset management company specialising in real estate, earned EEK 4.3 million in profits on EEK 8.6 million in sales revenue last year.
Balti Kinnisvaraportfell AS managed by EfTEN Capital incurred EEK 23.6 million in losses in 2009, resulting primarily from a EEK 42 million discount of real estate on the balance sheet.
According to Viljar Arakas, Chairman of the Management Board of EfTEN Capital, the first full financial year for the company ended as expected. “We believe we have made some investments with good potential; in accordance with the market situation, some of the assets have had to be valued down and some up. The team at EfTEN continue to search for suitable investment projects covered with strong lessees“, Arakas said.
The 2009 sales revenues of EfTEN Kinnisvarafond and Balti Kinnisvarafond AS, managed by EfTEN Capital, was EEK 15.6 million and EEK 37.8 million, respectively. The value of the assets of Balti Kinnisvarafond AS, as at the end of 2009, was approximately EEK 425 million and that of EfTEN Kinnisvarafond was approximately EEK 215 million. As at the end of 2009, 21 commercial buildings across Estonia were under the management of EfTEN Capital, with 100 000 square meters of lettable floor area.
According to Viljar Arakas, on some niches on the real estate market, recovery may be expected; however, the overall market situation continues to be complicated. “The anticipated economic growth this year is going to be more likely symbolic, and difficulties in business are of a longer-term nature; because of that, we also see no excessive recovery in the commercial premises market.”
In 2009, EfTEN Kinnisvarafond made three new investments. The Lõkke office building was acquired in Tallinn, the Lepa shopping centre in Pärnu, additionally an advance payment was made for the acquisition of the subsidiary owning the Police and Rescue Board building in Rakvere. The total amount of investments reached EEK 53.4 million. Balti Kinnisvaraportfelli AS made no new investments last year. In comparison with the previous year, the sales revenue of Balti Kinnisvarafond AS declined by 7%, which is a good result in view of the steep drop in the rent rates, Arakas said. Since EfTEN Capital was founded in 2008, benchmarks for EfTEN Capital and EfTEN Kinnisvarafond are only available for the period from 16 May 2008 to 31 December 2008.