EfTEN Capital’s fourth Baltics real estate fund has raised almost 80% of its €120m fundraising target at first close.
EfTEN Real Estate Fund IV (EREF IV) - which will focus on cash flow-generating properties such as office, retail and logistics - has so far raised €95m from investors including Baltic pension funds, insurance companies and EfTEN Capital partners.
Estonia’s LHV Pension Funds (LHV) has invested €20m in EREF IV, having invested in all EfTEN’s existing funds.
The new fund’s strategy is to invest mainly in core/core-plus properties with good location, moderate risk and proven rental cash flows, similar to the strategy of the EfTEN Real Estate Fund II. The fund is allowed to use up to 60% leverage, which means the total fund size could reach €300m.
Viljar Arakas, CEO of EfTEN Capital, said: “While €15m is the minimum ticket, in reality, we want to select properties in the range of €30 to €50m market value.”
Kristo Oidermaa, fund manager of active funds, LHV, said: “We are very satisfied with the performance of our previous investments in EfTEN funds. We have worked together with the team for the past ten years – it has great ability in sourcing new deals in the market and operating the current properties.”
Set up as an Estonian limited partnership, EREF IV is a 10-year closed-end fund.