EfTEN Real Estate Fund III public offering of shares was oversubscribed 1.35 times
EfTEN Real Estate Fund III AS public offering of shares has ended successfully with a total of 14.9 million euros worth of shares subscribed by 210 investors. Maximum limit of capital to be raised was 11 million euros, therefore public offering of shares was oversubscribed by 1.35 times.
According to EfTEN Real Estate Fund III AS’ fund manager Viljar Arakas, 63 percent of offered shares were subscribed by existing shareholders using pre-emptive subscription right, according to which existing shareholders have right to acquire shares before the public in the amount they held prior to new public offering. „For us the active participation of existing shareholders in new public offering of shares is a strong sign of recognition, trust and satisfaction,“ added Arakas.
After new public offering of shares, EfTEN Real Estate Fund III AS has 12.5 million euros of equity to be invested – in addition to 11 million euros that was raised in the new public offering of shares, the fund has 1.5 million euros from prior public offering of shares. With leverage, maximum investment capacity 36 million euros.
„We plan to invest the raised capital in investment objects that correspond with fund’s strategy as soon as possible, but do not set a specific timeframe. Our investment strategy is conservative and fund’s goal is to provide our investors stable dividend yield and capital growth,“ said Arakas.
Next public offering of shares could take place earliest this October – provided that raised capital has been successfully invested, said Arakas.
EfTEN Real Estate Fund III AS is first fund that will make investments to large-scale real estate projects accessible to retail investors. Fund’s initial public offering of shares in June 2015 attracted 160 investors and in total 13.8 million euros of share capital was raised.
The capital raised with the first public offering of shares in June 2015 has been invested in Saules Miestas, shopping mall situated in the heart of Lithuanian city Šiauliai and Ulonu business centre in Vilnius, capital of Lithuania.
The Fund’s leverage, according to articles of association confirmed by Estonian Financial Supervision Authority, is limited to a maximum of 65 percent of the total value of real estate transactions. Percentage of share capital in each new investment is 35% or more. Annual expected capital return is 15%. EfTEN Real Estate Fund III AS is not a guaranteed fund.
EfTEN Real Estate Fund III AS invests in commercial properties and limited-scope development (retail, office, logistics and hotels) or related securities in Estonia, Latvia and Lithuania. The fund is suitable for investors with a long-term investment horizon who want to benefit from the regional commercial real estate market outlook, attractive returns from stable and predictable cash flows and moderate capital growth.
Regulated by Estonian Financial Supervision Authority, EfTEN Real Estate Fund III AS term is 10 years, divided into 3 year investment period, 5 years holding and 2 years for exit. The Fund will potentially be listed in Baltic Stock Exchange market after investments period.