EfTEN Real Estate Fund III AS acquired Ulonu business centre in Vilnius, Lithuania. Ulonu is a B-class office building constructed in 2013 and located just a few kilometres from the central business district. The acquisition is second investment for EfTEN Real Estate Fund III AS, as well as fund's second investment in Lithuania.
According to Viljar Arakas, CEO of EfTEN Capital and EfTEN Real Estate Fund III fund manager, the property is a valuable addition to EfTEN's real estate portfolio. "Commercial real estate market in Lithuania and Baltics in general, offers attractive investments with expected yield levels of approx 7-8% during the upcoming year," said Arakas.
Ulonu business centre is let to 14 tenants. Total leasable area of the 7-storey office building constructed in 2013 is 5 174 sq. m and total area of the property is 6 756 sq. m, business centre has 117 parking places - underground and around the building.
Due to the confidentiality clause the transaction price cannot be disclosed. SEB bank Lithuania financed the acquisition.
EfTEN Real Estate Fund III AS is a public closed alternative investment fund that invests into commercial real estate in Baltic states specializing in opportunistic and value-adding investment strategy. The fund is founded in June 2015 by management company EfTEN Capital AS. 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.