Börsiteade

Pealkiri

Establishment of two subsidiaries, and conclusion of purchase agreements to acquire the property of Valkla Südamekodu and the right of superficies of Tartu Südamekodu

Teade

The 100% subsidiaries of EfTEN Real Estate Fund III AS entered into conditional
purchase agreements for the acquisition of two aged care home projects.

The  EfTEN Valkla  OÜ, 100% subsidiary  of the  EfTEN Real  Estate Fund  III AS,
signed  a  contract  under  the  law  of  obligations with the Südamekodud AS to
acquire  a property (registry part no. 14211002) located at Valkaranna road 36,
Valkla  village,  Kuusalu  Parish,  Harju  County  where  the  elderly care home
building  in  need  of  renovation  is  located.  The fund plans to renovate the
elderly  care home  building, which  could accommodate  up to 250 clients in the
future. Renovation  work will be carried out in stages. To date, no construction
procurement  has been conducted. This is planned to organize within three months
after  the conclusion of the real  right contract.  After signing the real right
contract,  the Südamekodud AS will operate the  property on the basis of a long-
term  lease agreement (10 + 10 years). Vision of the Südamekodud AS is to be the
best  neighbourhood elderly care service provider  in Estonia. The Südamekodu AS
operates elderly care homes in nine different locations in Estonia. The price of
the transaction is 2,005,000 euros, which will be paid upon signing a real right
contract,  and the buyer undertakes  to make investments in  the amount of up to
2,000,000 euros.  The  purchase  and  investments  are  financed from the fund's
equity.
In  order to complete the  transaction, the conclusion of  a lease agreement and
the  consent of  the Estonian  Competition Authority  are required. Thereafter a
real  right  agreement  will  be  singed  for  the  transfer of ownership of the
registered immovable.
The  EfTEN Valka OÜ is a 100% subsidiary of the fund established in the Republic
of  Estonia, with a share capital of  2,500 euros. The members of the Management
Board  of the private  limited company are  Viljar Arakas and  Tõnu Uustalu. The
private  limited company does not have a Supervisory Board. The establishment of
a  subsidiary is  not considered  to be  an acquisition  of a qualifying holding
within the meaning of the regulations of the Tallinn Stock Exchange. The members
of  the Supervisory Board and Management Board  of EfTEN Real Estate Fund III AS
are not personally interested in the transaction in any other way.

The  EfTEN Ermi OÜ, a  100% subsidiary of the Fund, signed  a contract under the
law  of obligations with  the Südamekodud AS  to acquire a  right of superficies
(registry  part no. 17851050) located at the Ermi Street 13, Tartu Parish, Tartu
County  where the fund plans to build an elderly care home for a minimum of 120
clients. The term of the right of superficies is 50 years, which can be extended
by  the  agreement  with  the  landowner  until  the  end of the lifetime of the
buildings.  The maximum term of the right  of superficies can be up to 99 years.
To  date, no construction  procurement has been  conducted and it  is planned to
carry  it out after signing a real right contract. After the construction of the
elderly  care home, the Südamekodud AS will lease it on the basis of a long-term
lease  agreement  (10  +  10 years).  The  transaction  price  of  the  right of
superficies  is 233,235 euros and  the buyer takes  over the obligations arising
from  the  agreement  on  the  establishment  of  the  right of superficies. The
purchase  and  investments  are  financed  from  the  fund's equity. In order to
complete the transaction, the consent of the owner of the land plot on which the
right  of superficies is based  - Tartu municipality, the  conclusion of a lease
agreement  and the consent  of the Estonian  Competition Authority are required.
After  this a real right agreement will  be singed for the transfer of ownership
of the right of superficies.
The  EfTEN Ermi OÜ is a 100% subsidiary  of the fund established in the Republic
of  Estonia, with a share capital of  2,500 euros. The members of the Management
Board  of the private  limited company are  Viljar Arakas and  Tõnu Uustalu. The
private  limited company does not have a Supervisory Board. The establishment of
a  subsidiary is  not considered  to be  an acquisition  of a qualifying holding
within the meaning of the regulations of the Tallinn Stock Exchange. The members
of  the Supervisory Board and Management Board  of EfTEN Real Estate Fund III AS
are not personally interested in the transaction in any other way.

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