EfTEN Real Estate Fund III AS acquired for €11.8m an office building in Vilnius

EfTEN Real Estate Fund III AS acquired through its subsidiary Rutkausko UAB in Vilnius the Rutkausko office building where the anchor tenant is international IT firm Atea. The transaction was closed on Friday, 14 August 2020. 

Total value of the transaction is 11.8 million euros, of which 4.5 million euros is financed from uninvested equity of EfTEN Real Estate Fund III AS. Average net entrance yield of the project is 7.1%. The property was sold by Sonex Consulting UAB. With the current transaction all equity in the fund is fully invested. 

“We decided to go against the flow in a time where transactions with commercial properties are uncommon and expand the portfolio of EfTEN Real Estate Fund III AS with a modern office building in Vilnius with a strong anchor tenant. After meticulously mapping the commercial property market in the Baltics, the Rutkausko office building with sales price of just over 1’700 EUR/m² of leasable area was the best available option and we made the investment decision,” said Viljar Arakas, Member of the Management Board of EfTEN Real Estate Fund III AS. 

The Rutkausko office building was constructed in 2014 and encompasses in eight storeys over 6,800 sq m of gross leasable area, of which 71% is leased for a long term to Atea. There are two other tenants in the building, which is located in Viršuliškės, is in close proximity to both central business district, Old Town and residential cluster in Vilnius. The building is at the intersection of two busy roads Pilaitės ave and Vilnius Western Bypass, the latter being a strategically important connection between the northern and southern parts of the city. 

The property will be acquired by a subsidiary of EfTEN Real Estate Fund III AS, Rutkausko UAB, registered at Verkių St 25C, Vilnius, the Republic of Lithuania. The company’s founder and 100% shareholder is EfTEN Real Estate Fund III AS and the company’s equity capital is currently 2,500 euros, consisting of 100 units with a nominal value of 25 euros each. As part of the transaction, the company’s share capital will be increased by 1,500 euros, for which EfTEN Real Estate Fund III AS will pay a capital payment of 1,500 euros and a share premium of 4,556,000 euros. After the increase of the share capital, the amount of the share capital will be 4,000 euros. The managing director of Rutkausko UAB is Laurynas Žilys, Country Manager Lithuania of EfTEN Capital. 

With the acquisition of the Rutkausko office building in Vilnius, the fund’s investment portfolio now encompasses 14 properties: Piepilsetas Logistics Centre and airBaltic headquarters in Riga, DSV logistics centres in Tallinn, Riga and Vilnius, a sales and service centre of ABC Motors in Tallinn, two Hortes garden centres and Laagri Selver retail centre in Tallinn, Saulės Miestas retail centre in Šiauliai, as well as Laisves 3, Evolution and Ulonų office buildings in Vilnius. 

Of EfTEN Real Estate Fund III AS portfolio, retail properties constitute 40%, logistics and manufacturing spaces 31% and office buildings 29%. Across the countries, 56% of the fund’s portfolio is in Lithuania, followed by Estonia (25%) and Latvia (19%). 

EfTEN Real Estate Fund III AS is an alternative investment fund founded in 2015, which is listed in Nasdaq Baltic Main List from December 01, 2017. The fund’s assets are managed by EfTEN Capital AS, an asset management company, regulated by the Estonian Financial Supervision Authority. The company is also managing EfTEN Kinnisvarafond AS, EfTEN Kinnisvarafond II AS and Usaldusfond EfTEN Real Estate Fund 4. EfTEN Capital group of companies (EfTEN Capital AS with its subsidiaries) manages 49 commercial real estate buildings where over 1,200 tenants are operating. Total market value of the real estate assets under management is about 750 million euros. 

Acquisition of the Rutkausko office building is not considered to be the purchase of significant share for the purposes of the “Requirements for Issuers” section of the Rules of NASDAQ OMX Tallinn Stock Exchange. Members of the council and the management board of EfTEN Real Estate Fund III AS also have no other personal interest in the transaction. 

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