Estonian real estate fund “EfTEN” enters Latvia

  • 2013-04-03
  • From wire reports

RIGA - The Estonian real estate fund “EfTEN Kinnisvarafond AS” has bought a land parcel in Jelgava where a shopping mall will be built, with a “Rimi” chain store as the key tenant. The acquisition marks Estonian fund “EfTEN’s” entry into the Latvian market. The Estonian company has established a joint venture with the Latvian company “Newcom”, named “EfTEN Capital”, for management of the property, “Newcom” representative Renata Kaupasa informed “”.

EfTEN Capital” head Viljar Arakas notes that the “EfTEN” fund is planning to further expand in Latvia. “Newcom” is a majority shareholder in several real estate, construction and property development companies in Latvia. “Newcom” and the Estonian company’s joint venture “EfTEN Capital” will manage all “EfTEN” investments in Latvia. Arakas says that “Newcom” head Viktors Savins is an experienced manager and he has successfully worked with Savins in the past, when Savins was the head of Estonian company “Arco Vara” subsidiary in Latvia.

The property in Jelgava is located near the highway, and “EfTEN Capital” has already signed a rent agreement with “Rimi” that will rent 60 percent of the new shopping mall’s total premises, and “EfTEN Capital” is confident that other premises in the mall will also be successfully rented out. The Jelgava project will be similar to the “UKU” shopping mall in Viljandi, except that the total floor area of the Jelgava mall is 1,000 square meters smaller, notes Arakas. The land parcel is 16,785 square meters in area, the total floor area of the shopping mall will be 4,470 square meters with a parking lot for 240 automobiles.