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Raivo Vare’s holding company purchased the Pääsküla store
Pääsküla KV OÜ, purchased the Pääsküla store located on Pärnu Str, in Tallinn, from the Keila Consumer Association. The structure of the deal and the negotiations were arranged by EfTEN Capital.
According to Raivo Vare, this is a sound long-term real estate investment. “A solid, strong lessee and a professional asset manager made this site interesting for us,” Vare said.
According to Aigar Kadastu, Member of the Management Board of the Keila Consumer Association, the company gave up owning the real estate in favour of leasing it in order to concentrate on its main field of activity. “For the Pääsküla Store and our customers, nothing will change. We gave up ownership of the registered immovable in order to develop the chain’s investment capacity in today’s highly competitive retail market,” Kadastu said.
According to Viljar Arakas, Member of the Management Board of EfTEN Capital AS and its CEO, today’s market creates opportunities for investors to not only participate in funds but to set up private portfolios which are then given to an asset management company to administer. “On a stand-alone basis, this site came out too small for the EfTEN Kinnisvarafond real estate fund in terms of its value; as a result, we offered the client the direct option of investing in this site. We can see demand for such a product, and the team at EfTEN are planning to complete similar analogous deals this year,” Arakas said.
Pääsküla KV OÜ is owned 100% by the entrepreneur Raivo Vare’s asset holding company Live Nature Eesti OÜ.
The total area of the Pääsküla Store at Pärnu mnt 421 and 421 A is 1148 square metres, and the size of the lot is 2838 square metres. The building was constructed in 1978, and renovated in its entirely in 2008.