Subsidiary of EfTEN Real Estate Fund III AS acquired a registered immovable of Pirita Pansionaat in Tallinn

EfTEN Pirita OÜ (former business name EfTEN SPV19 OÜ), a 100% subsidiary of EfTEN Real Estate Fund III AS, completed the registered immovable acquisition from Arca Varahaldus OÜ, located at OÜ Hunditubaka tee 12 / Karukella tee 5 in Tallinn (registration part no. 8521701). There is an aged care home on the registered immovable, which will be completed by the end of 2020. Earlier (i.e. 23.11.2020), the company has notified the stock exchange of the conclusion of a contract of sale under the law of obligations. All the agreed preconditions for transfer of ownership and conclusion of a real right contract have been met, including the Competition Authority's approval.

The price of the transaction without VAT was 6.2 million euros. To finance the transaction, the parent company took a loan in the amount of 3.1 million euros and EfTEN Pirita OÜ in the amount of 3.1 million euros. The loan of EfTEN Pirita OÜ is secured by a mortgage in the amount of 4,030,000 euros and a guarantee of the fund in the amount of 3,100,000 euros in favor of the lender AS Swedbank.

The property is rented and the Pirita Pansionaat is operated by Pirita Kodu OÜ, which has started pre-booking the rooms. The tenant will start paying the rent from 1 April 2021, and during the launch period, the rent will gradually increase, reaching full amount as of 1 January 2022.

Viljar Arakas

Member of the Management Board

Tel. 655 9515

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