Baltic, Funds, Good for Business, Lithuania, Real Estate
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Thursday, 25.04.2024, 13:06
Estonia's Eften Real Estate Fund acquires RYO shopping center in Lithuania
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Following the purchase of Kadrioru Arikeskus business center, RYO is an important addition to our portfolio as it will start producing positive cash-flow from day one, so Eften IV is off to an excellent start," said CEO of Eften Capital Viljar Arakas.
The transaction was closed on November 30.
The price of the transaction was 47 million euros, making it the second biggest investment in Eften's history, following the purchase of Domina center in Riga in 2016. RYO was previously owned by Finnish Pontos Group.
The one-floor center covers 24,300 square meters of leasable area and provides a parking lot for 950 cars. The center was fully renovated by Pontos in 2014. There are currently 132 tenants in RYO, among other major tenants - Rimi, Jysk, H&M and Avitela.
The transaction volume is 47 mln euros which will provide Eften Real Estate Fund IV a net entrance yield of over 8%.
Eften Capital will integrate RYO into Eften's successful Latvian and Lithuanian shopping center management structure, which is already managing Domina center in Riga, the Saules Miestas center in Siauliai and the RAF center in Jelgava.
RYO included, Eften Capital's shopping center management team will operate a portfolio of 100,000 square meters of commercial space in Latvia and Lithuania. The transaction was advised by Newsec and financed by Swedbank. Seller's legal counsel was Sorainen and the buyer was represented by FORT Vilnius.
Eften Real Estate Fund IV is a ten-year closed-end fund designed for institutional investors that is investing in cash flow generating commercial real estate properties in the Baltics. The non-public fund provides to institutional investors exposure to the Baltic real estate market by investing in large-scale commercial cash flow properties such as office, retail and logistics.
Eften Capital, founded in 2008, is a commercial property manager in the Baltics, managing four funds and private portfolios. The group has 41 commercial properties in Estonia, Latvia and Lithuania with over 1,000 tenants and a combined market value of 600 million euros.
Eften Capital AS is an AIFM-licensed fund manager acting under the supervision of the Estonian Financial Supervision Authority.
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