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EfTEN Real Estate Fund AS nine-month profit reaches €10 million
With Euribor rates falling, activity in the Baltic real estate market is increasing, which has a positive impact on EfTEN Real Estate Fund AS financial results. The Fund's turnover in the first nine months of this year reached EUR 23.9 million, while profit rose to EUR 10.1 million, up 47% compared to the same period last year.
"The recent decline in interest rates has positively influenced the value of real estate company shares and bonds on Scandinavian stock exchanges. Furthermore, Nordic banks operating in the Baltic region are once again showing greater willingness to finance the sector. According to the Fund Manager, these developments provide a solid foundation for recovering from the downturn in the Baltic commercial real estate market in recent years. However, major local investors still face capital shortages, and foreign investors remain largely inactive. In response to this market environment, EfTEN Real Estate Fund AS plans to launch a new share issue in autumn 2024 to raise up to EUR 30 million in additional capital," says Viktors Savins, EfTEN Capital Latvia Country Manager and CEO.
The third quarter was active with significant transactions - the fund's Estonian subsidiary, EfTEN Tähesaju tee OÜ, sold the Tähesaju Hortes property, and the fund established two new subsidiaries to acquire logistics centers in Tallinn and Harju, Estonia. The combined acquisition cost of these properties will approach EUR 15 million. In the third quarter, construction work was also completed for the opening of a senior care centre near Tartu in Estonia.
As of 30 September 2024, the Fund's assets totaled €377.7 million, with investment properties comprising 96% of the assets. By this date, the Group held ownership of 34 commercial investment properties.