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New EfTEN Real Estate Fund III AS announces public offering of shares

EfTEN Real Estate Fund III AS, a public closed alternative investment fund founded in June 2015, announces public offering of shares with a minimum investment of 10 000 euros per investor. The Fund management company’s partners and Fund managers have already invested 3.3 million euros in the Fund. Subscription period is June 15 – July 3, 2015. Shares can only be subscribed by Swedbank clients. Public offering of shares is organised by fund manager EfTEN Capital AS and subscription is organised by Swedbank.

In addition to investments made by EfTEN Capital’s partners, EfTEN Real Estate Fund III AS plans to raise in total 6,5 – 36 million euros of share capital that will be invested in cash-flow generating commercial real estate in Baltic states or securities related to commercial real estate.

According to EfTEN Real Estate Fund III AS’ fund manager Viljar Arakas, the prices of bonds and equity market are at all-time high and commercial real estate offers stable and income-producing investments with moderate risk. „In Scandinavia commercial real estate prime yield is already nearly below 4 percent, but in Baltic markets the yield level is 7-8 percent. With reasonable leverage Baltic commercial real estate market offers good rate of return that we offer to our investors through EfTEN Real Estate Fund III,“ Arakas added. Fund’s leverage, according to prospectus confirmed by Estonian Financial Supervision Authority, is limited to a maximum of 65 percent of the total value of real estate transactions. This is the first fund that will make investments to large-scale real estate projects accessible to retail investors.

Financial Supervision Authority confirmed the articles of association of EfTEN Real Estate Fund III AS on June 4, 2015. The fund term is 10 years, divided into 3 years of investments, 5 years holding and 2 years for exit. EfTEN Kinnisvarafond III AS will potentially be listed in Baltic Stock Exchange market after investments period.

EfTEN Real Estate Fund III AS is a public closed alternative investment fund that invests into commercial real estate in Baltic states specialising in opportunistic and value-adding investment strategy. The fund is founded in June 2015 by management company EfTEN Capital AS.

You can find all documents about the offering from EfTEN website www.eften.ee, from EfTEN Real Estate Funds – EfTEN Real Estate Fund III – Documents