Real estate would have been easier...

  • 2006-02-15
  • Baltic News Service
The daily Aripaev reported last week that if BRS sold its stake in Estonian Railway at its original offer price of 3 billion kroons, the Estonian nationals among the shareholders would earn approximately 700 million kroons (4.7 million euros).

In terms of return, this is significantly smaller than if the investors had put their money in real estate or in the equity of the garment maker Baltika, the paper wrote.

The 10 Estonians among the owners of BRS would earn a combined 700 million kroons. Of that, profit equaling some 70 million kroons has already been taken out as dividends. The sum also includes management reimbursement that may have been paid directly to Juri Kao and Guido Sammelselg as managers of Ganiger.

The parties' initial investment, which totaled 40 million kroons per person, would bring back 70 million kroons if BRS is paid the asked price. If the persons had in August 2001 invested the same 40 million kroons in real estate, they would be getting 100 million kroons, as the average price of prime real estate has grown in the meantime from 18,000 kroons to 45,000 kroons per square meter.