EfTEN CapitalEfTEN Capital

News

EfTEN Real Estate Fund III acquired DSV logistic centres in the Baltics

EfTEN Capital’s investment fund EfTEN Real Estate Fund III AS purchased three logistics centres in Estonia, Latvia and Lithuania, owned and occupied by group companies of DSV, one of the largest logistics groups in the world.

According to EfTEN Real Estate Fund III AS fund manager Viljar Arakas, the transaction perfectly fits the fund’s profile. “This is one of the leading logistic companies in the world, which, according to contract, will be leasing the premises from us at least for the next ten years. For the fond, this is a great opportunity to enter into logistic real estate, involving all three Baltic countries,” said Arakas.

EfTEN Real Estate Fund III purchased with a sale-and-leaseback transaction three DSV logistics centres in Tallinn (Pärnu road 535), Riga (Krustpils road 31) and Vilnius (Stasylu road 21). All three logistics centres are located next to arterial roads, have been built or renovated in 2000-2006 and in great condition. In total, EfTEN acquired ca 33 000 square meters of office and logistic space, which will be leased out at rent rates, which correspond to the market rent level in each of the countries. In autumn 2017, construction of the extension of Riga facilities and territory is scheduled to begin, resulting in a further ca 4300 increase of the main building area.

The transaction in Lithuania comes into effect immediately, the transaction in Estonia is pending approval from Competition Authority and the transaction in Latvia will come into effect as soon as City of Riga formally submits notice of declining their right of pre-emption. The transaction price is confidential according to the contract. The transaction was advised by Colliers International. FORT law firm represented EfTEN in all three Baltic countries.

DSV is one of the world’s leading transportation and logistics companies with more than 800 offices and 300 logistics units in 80 countries across the world. The group employs more than 40 000 people. DSV is the market leader in all three Baltic states.