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EfTEN Real Estate Fund III AS acquired for €11.8m an office building in Vilnius

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EfTEN Real Estate Fund III AS acquired through its subsidiary Rutkausko UAB in
Vilnius the Rutkausko office building where the anchor tenant is international
IT firm Atea. The transaction was closed on Friday, 14 August 2020.

Total value of the transaction is 11.8 million euros, of which 4.5 million euros
is financed from uninvested equity of EfTEN Real Estate Fund III AS and 7.3
million euros by SEB bank with loan margin of 2,1%. Average net entrance yield
of the project is 7.1%. The property was sold by Sonex Consulting UAB. With the
current transaction all equity in the fund is fully invested.

"We decided to go against the flow in a time where transactions with commercial
properties are uncommon and expand the portfolio of EfTEN Real Estate Fund III
AS with a modern office building in Vilnius with a strong anchor tenant. After
meticulously mapping the commercial property market in the Baltics, the
Rutkausko office building with sales price of just over 1'700 EUR/m² of leasable
area was the best available option and we made the investment decision," said
Viljar Arakas, Member of the Management Board of EfTEN Real Estate Fund III AS.

The Rutkausko office building was constructed in 2014 and encompasses in eight
storeys over 6,800 sq m of gross leasable area, of which 71% is leased for a
long term to Atea. There are two other tenants in the building, which is located
in Virshulishk?s, is in close proximity to both central business district, Old
Town and residential cluster in Vilnius. The building is at the intersection of
two busy roads Pilait?s ave and Vilnius Western Bypass, the latter being a
strategically important connection between the northern and southern parts of
the city.

The property will be acquired by a subsidiary of EfTEN Real Estate Fund III AS,
Rutkausko UAB, registered at Verki? St 25C, Vilnius, the Republic of Lithuania.
The company's founder and 100% shareholder is EfTEN Real Estate Fund III AS and
the company's equity capital is currently 2,500 euros, consisting of 100 units
with a nominal value of 25 euros each. As part of the transaction, the company's
share capital will be increased by 1,500 euros, for which EfTEN Real Estate Fund
III AS will pay a capital payment of 1,500 euros and a share premium of
4,556,000 euros. After the increase of the share capital, the amount of the
share capital will be 4,000 euros. The managing director of Rutkausko UAB is
Laurynas Zhilys, Country Manager Lithuania of EfTEN Capital.

With the acquisition of the Rutkausko office building in Vilnius, the fund's
investment portfolio now encompasses 14 properties: Piepilsetas Logistics Centre
and airBaltic headquarters in Riga, DSV logistics centres in Tallinn, Riga and
Vilnius, a sales and service centre of ABC Motors in Tallinn, two Hortes garden
centres and Laagri Selver retail centre in Tallinn, Saul?s Miestas retail centre
in Shiauliai, as well as Laisves 3, Evolution and Ulon? office buildings in
Vilnius.

Of EfTEN Real Estate Fund III AS portfolio, retail properties constitute 40%,
logistics and manufacturing spaces 31% and office buildings 29%. Across the
countries, 56% of the fund's portfolio is in Lithuania, followed by Estonia
(25%) and Latvia (19%).

Attached are photos of the property (source: EfTEN Capital AS).

EfTEN Real Estate Fund III AS is an alternative investment fund founded in
2015, which is listed in Nasdaq Baltic Main List from December 01, 2017. 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 Usaldusfond
EfTEN Real Estate Fund 4. EfTEN Capital group of companies (EfTEN Capital AS
with its subsidiaries) manages 49 commercial real estate buildings where over
1,200 tenants are operating. Total market value of the real estate assets under
management is about 750 million euros.

Acquisition of the Rutkausko office building 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
Tel: 655 9515
E-mail: [email protected] (mailto:[email protected])