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EfTEN sold commercial building in Riga to Colonna group investors

EfTEN Kinnisvarafond AS sold commercial building at Stabu 10/4 located in Riga, Latvia to real estate investment company Colonna Varahaldus. Transaction price is not to be disclosed according to agreement between the parties.

This is the first property EfTEN sold in Latvia according to Viktors Savins chairman of EfTEN Capital Latvia. After 4 years of professional building management we have made successful exit. The property was acquired 4 years ago. I am sure that the property is in good hands and the new owner will continue professional management of the property.

Colonna is actively looking for investments in all Baltic states, according to Roberto de Silvestri, head of the Colonna group. “Stabu 10 commercial building is the second investment for us in Latvia. The property with central location and strong tenants with long-term agreements is in line with all investment criteria of our investors,” added de Silverstri.

EfTEN Kinnisvarafondi AS bought the property at Stabu street in Riga in 2013 from SIA Ektornet Commercial Latvia. It is a former industrial building that has been transformed into a class-A office building with 3,700 square meters of rentable area.

The holding period of the project was four years, return on equity invested was 21% on an annual basis and equity multiplier 1.8. According to Viljar Arakas, fund manager of EfTEN Kinnisvarafond AS, this is ninth successful individual property sale transaction for EfTEN’s first fund.

Founded in 2006, Colonna Group that is mainly involved in capital market intermediary has investments in the Baltic states amounting to more than 250 million euros. Investors related to the company own more than 87 real estate objects. In total, Colonna manages over 250,000 square meters of leasable area.

EfTEN Kinnisvarafond AS is a real estate fund founded in 2008, that invests in cash flow generating commercial properties. EfTEN Kinnisvarafond AS’ investment period ended in 2015 when EfTEN Kinnisvarafond II AS and EfTEN Real Estate Fund III AS were founded. Fund’s portfolio includes 20 properties in Estonia, Latvia and Lithuania and total volume of assets under management is 220 million euros.

EfTEN Capital SIA was jointly established in April 2013 by two founders- “EfTEN Capital” AS from Estonia and “NEWCOM” SIA, marking EfTEN Capital expansion into Latvian market. EfTEN Capital AS is an asset management company, founded in 2008, specializing in commercial real estate investments in the Baltic States. The company is managing EfTEN Kinnisvarafond AS, EfTEN Kinnisvarafond II AS and EfTEN Real Estate Fund III AS. EfTEN Capital group of companies (EfTEN Capital AS with its subsidiaries) manages 45 commercial real estate buildings and more than 900 tenants. Total real estate assets under management is 500 million euros as of April 1, 2017.EfTEN Capital is authorized and regulated by Estonian Financial Supervision Authority.