Published: 2018-05-31 15:02:00 CEST
EfTEN Real Estate Fund III
Company Announcement

EfTEN Real Estate Fund III AS purchased “Evolution” business center in Vilnius through its subsidiary

Today, on 31 May 2018 EfTEN Real Estate Fund III AS through its subsidiary EfTEN Evolution UAB purchased “Evolution” business center located on Ukmergēs str. 223, in Vilnius, Republic of Lithuania. The business center is situated on the land plot that belongs to the Republic of Lithuania with the longterm (until 2095) rental right.

The building of the business center was completed in 2009. The total enclosed area of the building is 13,326 m2, which also includes parking spaces for a total of 229 cars. 86% of the business center with the total rental space area of 6,172 m² is currently rented out to 15 tenants, including several international companies, such as Eurovaistine pharmacy, Grifs AG, Compensa Life, Akzo Nobel Baltics, Telia, Linus Medical, Dussmann Service. Rental agreement with the companies of Telia Group that rent the total of 2,656 m² of office space ends in the end of 2018, after which the vacated rooms will be renovated.

The transaction price without VAT was 9,0 million euros, which is 680 euros per gross square meter. The business center is purchased for 9,02 million euros (including VAT). The initial yield at 100% occupancy rate is 8% per annum. Colliers, the real property appraiser of the fund, has assessed the value of the acquired “Evolution” business center to be 10 million euros.

A subsidiary of the fund, EfTEN Evolution UAB, registered in the Commercial Register of the Republic of Lithuania possessing the equity capital of 2,500 euros, was acquired by the fund prior to and with the aim to purchase the abovementioned “Evolution” business center. The director of the company is Laurynas Žilys, who is also the CEO of EfTEN Capital Lietuva UAB. Acquisition of EfTEN Evolution UAB is not considered to be the purchase of significant share for the purposes of the “Requirements for Issuers” section of the Rules of NASDAQ OMX Tallinn Stock Exchange. Members of the council and the management board of EfTEN Real Estate Fund III AS also have no other personal interest in the transaction.

Viljar Arakas
member of the management board
Telephone: 655 9515