EfTEN Real Estate Fund AS is reporting that its turnover in the first nine months of this year reached EUR 23.9 million, while profit rose to EUR 10.1 million, up 47% over the same period last year.
“The recent decline in interest rates has positively influenced the value of real estate company shares and bonds on Scandinavian stock exchanges,” said Viktors Savins, EfTEN Capital Latvia Country Manager and CEO. “Furthermore, Nordic banks operating in the Baltic region are once again showing greater willingness to finance the sector. According to the Fund Manager, these developments provide a solid foundation for recovering from the downturn in the Baltic commercial real estate market in recent years. However, major local investors still face capital shortages, and foreign investors remain largely inactive. In response to this market environment, EfTEN Real Estate Fund AS plans to launch a new share issue in autumn 2024 to raise up to EUR 30 million in additional capital.”
EfTEN Real Estate Fund AS was particularly active in the third quarter of 2024, as the fund’s Estonian subsidiary, EfTEN Tahesaju tee OU, sold the Tahesaju Hortes property (as reported by CEE Real Estate Matters on September 18, 2024), and the fund established two new subsidiaries to acquire logistics centers in Tallinn and Harju, Estonia. The combined acquisition cost of these properties will approach EUR 15 million. In the third quarter, construction work was also completed for the opening of a senior-care center near Tartu in Estonia.
As of September 30, 2024, the fund’s assets totaled EUR 377.7 million, with investment properties comprising 96% of the assets. By this date, the group held ownership of 34 commercial investment properties.
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