VILNIUS - Through its subsidiary EfTEN Real Estate Fund III AS has acquired “Evolution” business centre complex in Vilnius, Lithuania. The business centre first opened in 2009 and provides over six thousand square meters of gross leasable area.
According to EfTEN Real Estate Fund III AS board member Viljar Arakas, “Evolution” is a modern 10-floor business centre in the northern part of Vilnius which will make an excellent addition to the opportunistic investment strategy of EfTEN Real Estate Fund III AS. The biggest lease holder at “Evolution” today, Telia, will be moving to new premises in the beginning of next year so all its currently held office space will be made available for new tenants. “We see a high demand for office space in Vilnius and “Evolution” is our opportunity to provide modern office spaces at a reasonable rental price. The initial yield at 100% occupancy rate is 8% per annum, which is an attractive return of investment from our fund’s point of view,” said Arakas.
“Evolution” business centre has a bright outlook for the future as Vilnius municipality is currently planning several infrastructure projects that will add value and further enhance the potential of “Evolution’s” location. “This deal marks success for EfTEN Real Estate Fund III AS as we acquired the business property in a location with good potential and with the purchase price of 680 euros per gross buildable m2,” said Arakas. The transaction price of “Evolution” was 9,02 million euros including VAT. Colliers International has valued the acquired property on a fair value of 10 million euros.
Currently the 6 172 square meters of total rental space area in “Evolution” is occupied to the extent of 86% by 15 companies including several multinationals such as Eurovaistine pharmacy, Grifs AG, Compensa Life, Akzo Nobel Baltics, Telia, Linus Medical and Dussmann Service. The total enclosed area of the complex extends to 13 326 m2 and consists of an office building with high-ceiling commercial premises on ground floor and multi-level parking with enough parking space for 229 cars.
EfTEN Real Estate Fund III AS is the only fund, managed by EfTEN Capital AS, that makes investments to the large-scale commercial real estate projects accessible to retail investors, characterized by stable, predictable cash flow and capital growth. The Fund’s leverage, according to prospectus confirmed by Estonian Financial Supervision Authority, is limited to a maximum of 65 percent of the total value of real estate acquisition value. Annual expected equity return is 15 percent. EfTEN Real Estate Fund III AS is not a guaranteed fund.