Financial Services, Funds, Good for Business, Investments, Latvia, Real Estate

Viljar Arakas, CEO of EfTEN Capital AS, highlighted the property's excellent location in the crossroads of different trade routes and with a good access to Riga. "For the fund, it's also a very attractive transaction when considering the purchase price per square metre," added Arakas.

Located in the outskirts of Riga and next to the Via Baltica, the building is housing several tenants, like logistics companies Trialto Latvia and DHL, Tele2, SEB Banka AS and SEB Shared Service Center in Riga. The building was commissioned in 2007 and its gross area amounts to about 39,000 square metres, the entire land plot area being about 10.3 hectares.

With the acquisition, EfTEN Real Estate Fund 4 made its first investment in the logistics segment. The transaction is valued at EUR 16.5m  and the Riga office of Colliers International acted as the transaction's advisor.

EfTEN Real Estate Fund 4 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 fund's assets are managed by EfTEN Capital AS, an asset management company, regulated by the Estonian Financial Supervision Authority. The company is also managing EfTEN Kinnisvarafond AS, EfTEN Kinnisvarafond II AS and EfTEN Real Estate Fund III AS, a company listed on Nasdaq Tallinn. EfTEN Capital group of companies (EfTEN Capital AS with its subsidiaries) manages 43 commercial real estate buildings where over 1,100 tenants are operating. Total market value of the real estate assets under management is about EUR 750m.