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EfTEN Real Estate Fund expands to Latvia
EfTEN Real Estate Fund acquired a land plot in Jelgava near Riga, where the fund is planning to build a local shopping centre, the anchor tenant being RIMI. The acquisition marks Estonian real estate fund, EfTEN’s entrance to Latvian market, as the fund manager is starting up a local company.
According to Viljar Arakas, the CEO of EfTEN Capital, the planned shopping centre has a good starting position. “The property is well located by a busy road. We have already signed the contract with anchor tenant RIMI, who will be taking 60% of the space, and we are confident about finding tenants for the rest of the space,” Arakas said. “The Jelgava project is in fact quite similar to our UKU shopping centre project in Viljandi – in both cases we acquired an empty land plot which we develop ourselves, and RIMI is an anchor tenant in both centres on an equal amount of space. Only in Jelgava the rest of the rental space is about 1000 m2 smaller.”
The property is located in Jelgava at Rigas street 48. Jelgava city which has 60 000 inhabitants is in 40km distance from Riga. The Jelgava property encompasses land plot of 16 785 m2 and 4470 m2 of rental space that should be built. There will be ca 240 parking spaces.
Arakas noted that the company has larger plans in Latvia. “This is not a one-time visit to our southern neighbours. We are establishing a local company and a second transaction is already being pre-signed,” Arakas said. EfTEN’s partner in Latvia is Viktors Savins’ company SIA Newcom.
SIA Newcom is majority shareholder in the companies involved in real estate development, construction and property management business in Latvia. SIA Newcom group daughter company SIA Newcom Development was established in August 2012 as acquiring company in reorganization of SIA Arco Development – Estonian Arco Vara AS subsidiary in Latvia.
Both companies will jointly establish SIA EfTEN Capital in Riga. The future subsidiary company will be in charge of all EfTEN’s investments in Latvia. “Viktors Savins is a strong manager, whom I was working together already a decade ago when he was running Arco Vara’s Latvian unit. Now he is operating his own company SIA Newcom. Viktors and I have been doing market research for the past nine months, have now started the first transactions and starting the actual business operations,” spoke Arakas.
The acquisition marks the 16th object in EfTEN Real Estate Fund’s portfolio, with a total 88 000 m2 of rental area, divided into office, service, accommodation, warehousing and public sector of property.
EfTEN Real Estate Fund established by EfTEN Capital AS, the fund manager, in year 2008. The fund invests in commercial real estate properties; a portfolio of commercial real estate has a total of 15 objects. EfTEN Capital AS is an asset management company founded in 2008, specialising in real estate investments. EfTEN Capital is licensed as a fund manager by Estonian FSA. The company also offers private portfolio management.