EfTEN Real Estate Fund III AS, a company listed on Nasdaq Tallinn, has signed conditional purchase agreements for acquiring two commercial properties in Latvia. The fund will buy in the territory of Riga Airport airBaltic\u2019s headquarters, as well as a logistics centre in \u0136ekava, in the outskirts of Riga. The properties are sold by New Hanza Capital.<\/p>\n\n\n\n
\u201eairBaltic\u2019s\noffice building is in a perfect location, in immediate proximity of the\npassenger terminal of the largest Baltic airport. In the future, Riga Airport\nwill be connected to Rail Baltic that will make the area even more attractive.\nairBaltic\u2019s headquarters was fully renovated in 2016 and current rental\nagreement is signed until 2026,\u201c said Viljar Arakas, EfTEN Real Estate Fund III\nfund manager.<\/p>\n\n\n\n
By the year\n2022, over 45 million euros will be invested by Riga Airport for terminal\nexpansion alone, and for Rail Baltic a brand new train station will be\nconstructed.<\/p>\n\n\n\n
Piepilsetas\nLogistics Centre in \u0136ekava is a technically advanced property, favourably\nlocated at Via Baltica road transit route. The centre\u2019s major tenants are\nFristads Kansas Production SIA and Forans SIA.<\/p>\n\n\n\n
Total value of\ntransactions is 15.8 million euros, of which 7.2 million euros are financed by\nSwedbank and Luminor. Both buildings are acquired from the Latvian company New\nHanza Capital AS.<\/p>\n\n\n\n
Average net\nentrance yield of two projects is 7.5% and considering the indexing of fixed\nrental rate, in comparison with the acquisition price, the growth to net yield\nof 8% will be achieved after three years. Considering the amount of uninvested\nequity of the EfTEN Group \u2013 14 million euros -, a lesser amount of bank\nfinancing is applied in the transaction, which can be increased in new projects\nlater, if needed. The transactions should be completed after the pre-conditions\nof agreements have been met, but not later than on February 28, 2020.<\/p>\n\n\n\n
Of EfTEN Real\nEstate Fund III AS\u2019s portfolio, retail properties constitute 46%, logistics and\nmanufacturing spaces 27% and office buildings 27%. Across the countries, 64% of\nthe fund\u2019s portfolio is in Lithuania, followed by Estonia (28%) and Latvia (8%).<\/p>\n\n\n\n
Currently the\nfund\u2019s investment portfolio encompasses 11 properties: DSV logistics centres in\nTallinn, Riga and Vilnius, a sales and service centre of ABC Motors in Tallinn,\ntwo Hortes garden centres and Laagri Selver retail centre in Tallinn, Evolution\nbusiness centre in Vilnius, Saul\u0117s Miestas retail centre in \u0160iauliai, as well\nas Laisves 3 and Ulon\u0173 office buildings in Vilnius.<\/p>\n","protected":false},"excerpt":{"rendered":"
EfTEN Real Estate Fund III AS, a company listed on Nasdaq Tallinn, has signed conditional purchase agreements for acquiring two commercial properties in Latvia. The fund will buy in the territory of Riga Airport airBaltic\u2019s headquarters, as well as a logistics centre in \u0136ekava, in the outskirts of Riga. The properties are sold by New […]<\/p>\n","protected":false},"author":6,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[35],"tags":[],"class_list":["post-4744","post","type-post","status-publish","format-standard","hentry","category-eften-real-estate-fund-news"],"yoast_head":"\n