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
\u00a0<\/strong>\u201eairBaltic\u2019s office building is in a perfect location, in immediate proximity of the passenger terminal of the largest Baltic airport. In the future, Riga Airport will be connected to Rail Baltic that will make the area even more attractive. airBaltic\u2019s headquarters was fully renovated in 2016 and current rental agreement is signed until 2026,\u201c said Viljar Arakas, EfTEN Real Estate Fund III fund manager.<\/p>\n By the year 2022, over 45 million euros will be invested by Riga Airport for terminal expansion alone, and for Rail Baltic a brand new train station will be constructed.<\/p>\n Piepilsetas Logistics Centre in \u0136ekava is a technically advanced property, favourably located at Via Baltica road transit route. The centre\u2019s major tenants are Fristads Kansas Production SIA and Forans SIA.<\/p>\n Total value of transactions is 15.8 million euros, of which 7.2 million euros are financed by Swedbank and Luminor. Both buildings are acquired from the Latvian company New Hanza Capital AS.<\/p>\n Average net entrance yield of two projects is 7.5% and considering the indexing of fixed rental rate, in comparison with the acquisition price, the growth to net yield of 8% will be achieved after three years. Considering the amount of uninvested equity of the EfTEN Group \u2013 14 million euros -, a lesser amount of bank financing is applied in the transaction, which can be increased in new projects later, if needed. The transactions should be completed after the pre-conditions of agreements have been met, but not later than on February 28, 2020.<\/p>\n Of EfTEN Real Estate Fund III AS\u2019s portfolio, retail properties constitute 46%, logistics and manufacturing spaces 27% and office buildings 27%. Across the countries, 64% of the fund\u2019s portfolio is in Lithuania, followed by Estonia (28%) and Latvia (8%).<\/p>\n Currently the fund\u2019s investment portfolio encompasses 11 properties: 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, Evolution business centre in Vilnius, Saul\u0117s Miestas retail centre in \u0160iauliai, as well as 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":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[22],"tags":[],"class_list":["post-1248","post","type-post","status-publish","format-standard","hentry","category-news"],"yoast_head":"\n