EfTEN United Property Fund has entered into a sale agreement with UAB M7 investicijos (Lithuanian company registry code 307671275) for the sale of its subsidiary EfTEN M7 UAB, which owns the office building at Menulio 7 in Vilnius. The transaction is structured as a share deal selling the 100% subsidiary.
Under the sale agreement, the buyer will immediately return in full the bank loan of EfTEN M7 UAB and, within 17 months at the latest, the shareholder loan from EfTEN United Property Fund in the amount of EUR 2.899 million. The shareholder loan bears interest of 9% per annum during the first 12 months and 12% per annum thereafter. To secure the loan, a first-ranking mortgage will be placed on the property at Menulio 7 in favour of the fund.
EfTEN United Property Fund invested EUR 3.598 million in the acquisition of the Menulio 7 office building at the beginning of 2022. Together with the dividends and interest received from the investment to date, the fund will earn a profit of 760 thousand euros upon completion of the sale transaction.
The purpose of the transaction is to reduce the share of office segment investments. The proceeds from the sale are planned to be reinvested into new projects. The fund is currently in negotiations regarding the investment into a residential development project at Rae municipality in Estonia and into the acquisition of a retail centre in Riga.
Kristjan Tamla
Managing Director
Phone:655 9515
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