Market announcement

EfTEN Real Estate Fund AS

LEI code

4851000008JBI71L7643

Size of the entity

Medium group

Economic activities

Financial and Insurance Activities

Industry sector(s)

Management company

Country of registered office

Estonia

General information

Categories

Other price sensitive information

Unique data record identifier

7703

Submission date and time

13.01.2020 08:00:00

Content of announcement in Estonian

Title

EfTEN Real Estate Fund III AS omandab Riia lennujaamas asuva Air Balticu peahoone ja Riia külje all Kekavas asuva tootmis- ja laohoone

Message

10. jaanuaril  2020. a  sõlmis  EfTEN  Real  Estate  Fund  III AS võlaõiguslikud
ostulepingud  Riia  lennujaamas  asuva  Air  Balticu  peahoone ja Riia külje all
Kekavas  asuva tootmis- ja laohoone omandamiseks. Tehinguga ostab fond New Hanza
Capital    AS-lt,    kahe    alljärgneva    ettevõtte,    mis    omavad    fondi
investeerimispõhimõtetele vastavat kinnisvara, 100%-lised osalused:

 1. NHC 1 SIA, mille osakapital on 500 000 eurot ja mis omab ärihoonet aadressil
    Tehnikas 3, Riia lennujaam, Marupes'i rajoon, Läti Vabariik. Ettevõttele
    kuuluv hoone paikneb Riia lennujaamale (VAS-le 'Starptautiska Lidosta
    'Riga') kuuluval maal, mille osas kehtib hoonestusõigus. Hoone on valminud
    1977. aastal ning täielikult renoveeritud 2016. aastal. Hoone kogu pindala
    on  6 556,4 m² ja see on kuni 2026. aastani kestva katkestamatu üürilepingu
    alusel tervikuna Air Balticu kontserni kasutuses. Kinnistul on 77
    parkimiskohta.
 2. NHC 3 SIA, mille osakapital on 700 000 eurot ja mis omab kinnistut aadressil
    Krustkalni, Kekava vald, Kekava rajoon, Läti Vabariik. Kinnistul paiknev
    tootmis- ja laohoone on valminud 2007. aastal. Hoone pindala on 14 129,9 m².
    Kinnistul on 123 parkimiskohta. Hoone on 99% osas välja üüritud.

Tehingute  kogumaksumus on  ligikaudu 15,8 miljonit  eurot, millest 7,2 miljonit
eurot  finantseeritakse Swedbanki  ja  Luminori  kaasabil. Arvestades EfTEN Real
Estate  Fund  III  AS-i  suurt  investeerimata kapitali mahtu, otsustas juhtkond
kasutada tehingus kõrgemat omakapitalimäära kui seda tehtaks tavaolukorras. Kahe
projekti  võimendamata  neto  sisenemistootlus  on kokku 7,5% aastas. Arvestades
fikseeritud  üüri indekseerimisi,  tõuseb puhastootlus  kolme aasta  jooksul 8%
võrreldes  projektide soetusmaksumusega. Tehingud on kavas lõpule viia hiljemalt
28. veebruariks  2020, kui  asjaõigusliku  lepingu  sõlmimise  eeltingimused  on
täidetud.

NHC  1 SIA tehingu rahaline maht moodustab  5% fondi tänasest varade mahust ning
NHC  3 SIA  tehingu  rahaline  maht  moodustab  7% fondi  tänasest varade mahust
ja omandamised ei ole käsitletavad olulise osaluse omandamistena Nasdaq Tallinna
Börsi  reglemendi tähenduses. Tehingud ei ole ka käsitletavad tehingutena seotud
isikuga  ning fondi nõukogu  ja juhatuse liikmed  ei ole tehingutest muul viisil
isiklikult huvitatud.




Viljar Arakas
juhatuse liige
Tel. 655 9515
E-post: [email protected]

Content of announcement in English

Title

EfTEN Real Estate Fund III AS will acquire headquarters building of Air Baltic located in Riga Airport as well as production and storage facility located in Kekava near Riga

Message

On  January  10, 2020, EfTEN  Real  Estate  Fund  III  AS  (the  Fund) concluded
conditional  purchase agreements to acquire  headquarters building of Air Baltic
located  in Riga Airport as  well as production and  storage facility located in
Kekava  near Riga. With the  transaction the Fund  will purchase 100% holding in
the  2 following companies  owning real  estate corresponding  to the investment
principles of the Fund from New Hanza Capital AS:

 1. NHC 1 SIA with a share capital of EUR 500 000, owning commercial building
    located at Tehnikas 3, Riga Airport, Marupes district, Republic of Latvia.
    Building belonging to the company is located on the land, for which the
    right of superficies exist, belonging to Riga Airport (VAS 'Starptautiska
    Lidosta 'Riga''). The building was completed in 1977 and fully renovated in
    2016. The total surface area of the building is 6 556.4 m² and it is wholly
    occupied by Air Baltic group under the fixed term rent agreement valid until
    2026. There are 77 parking places on the registered immovable.
 2. NHC 3 SIA with a share capital of EUR 700 000, owning a registered immovable
    located at Krustkalni, Kekava municipality, Kekava district, Republic of
    Latvia. The production and storage facility located on the registered
    immovable was completed in 2007. The surface area of the building is
    14 129.9 m². There are 123 parking places on the registered immovable. 99%
    of the building is rented out.

The  total cost of the transactions is  approximately EUR 15.8 million, of which EUR
7.2 million  will be financed  by Swedbank and  Luminor. Taking into account the
large  amount  of  uninvested  capital  of  EfTEN  Real  Estate Fund III AS, the
management  decided  to  use  the  higher  equity  ratio than usually. The total
unleveraged  initial yield of the two projects is 7.5% annually. Considering the
indexing  of fixed rental rate,  net yield will increase  by 8% over three years
compared  to the acquisition  price. The transactions  should be completed after
the  pre-conditions of agreements have been met,  but not later than on February
28, 2020.

The  monetary amount of the  transaction with NHC 1 SIA  will comprise 5% of the
current  volume of assets of the Fund and the monetary amount of the transaction
with  NHC 3 SIA will comprise 7% of the current volume of assets of the Fund and
the  acquisitions do not  constitute acquisition of  a qualifying holding in the
meaning of the rules and regulations of Nasdaq Tallinn. The transactions also do
not  constitute  transactions  with  associated  person  and  the members of the
Council  and the Management Board  of the Fund are  not personally interested in
the transactions in any other ways.

Viljar Arakas
Member of the Management Board
Phone 655 9515
E-mail: [email protected]