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Eften to manage MEEK 500 Baltic real estate portfolio
As of 1 January next year, the company that owns properties in Estonia, in the amount of about MEEK 500, will be operating under the name of Balti Kinnisvaraportfell AS.
According to the contract, EfTEN Capital will be offering portfolio asset management services, the companies announced. EfTEN Capital will also receive the right to nominate two members to the Supervisory Board of the company that manages the portfolio.
The real estate portfolio includes a total of 12 properties, including the building housing the Bauhof in Rakvere, the industrial premises rented by Unipress and Reva Print in Tallinn, the office, business and service premises in Tartu, also the building with office and service premises on Town Hall Square in Tartu, the office building on Liimi Street in Tallinn, the commercial premises/warehouse in Jõhvi, the office and commercial premises in Võru and the business and production building in Tänassilma. All sites have long-term anchor tenants.
By agreement between the parties, the price of the contract will not be disclosed. East Capital Real Estate will continue with the management of East Capital Baltic Property Fund AB in the Baltic States.
“It is sensible for East Capital to focus its activities on the Baltic real estate market, on the management of the Capital Baltic Property Fund, and we are glad that in EfTEN we have found a partner who is interested in managing another fund,” said Gert Tiivas, Chairman of the Supervisory Board of East Capital Real Estate.
According to Viljar Arakas, Chairman of the Management Board of EfTEN Capital, the value of the assets managed by the company is about MEEK 650 after the transaction. “We at EfTEN know very well the quality of the assets in the portfolio, which is why we are very glad about the transaction,” said Arakas. “Although the volume is big, I can see that we have the strength to grow next year as well and be a consolidator on the complex market – not only investing in individual properties, but also purchasing entire portfolios.”