The 100% subsidiaries of EfTEN Real Estate Fund III AS entered into conditional purchase agreements for the acquisition of two aged care home projects.
The EfTEN Valkla OÜ, 100% subsidiary of the EfTEN Real Estate Fund III AS, signed a contract under the law of obligations with the Südamekodud AS to acquire a property (registry part no. 14211002) located at Valkaranna road 36, Valkla village, Kuusalu Parish, Harju County where the elderly care home building in need of renovation is located. The fund plans to renovate the elderly care home building, which could accommodate up to 250 clients in the future. Renovation work will be carried out in stages. To date, no construction procurement has been conducted. This is planned to organize within three months after the conclusion of the real right contract. After signing the real right contract, the Südamekodud AS will operate the property on the basis of a long-term lease agreement (10 + 10 years). Vision of the Südamekodud AS is to be the best neighbourhood elderly care service provider in Estonia. The Südamekodu AS operates elderly care homes in nine different locations in Estonia. The price of the transaction is 2,005,000 euros, which will be paid upon signing a real right contract, and the buyer undertakes to make investments in the amount of up to 2,000,000 euros. The purchase and investments are financed from the fund’s equity.
In order to complete the transaction, the conclusion of a lease agreement and the consent of the Estonian Competition Authority are required. Thereafter a real right agreement will be singed for the transfer of ownership of the registered immovable.
The EfTEN Valka OÜ is a 100% subsidiary of the fund established in the Republic of Estonia, with a share capital of 2,500 euros. The members of the Management Board of the private limited company are Viljar Arakas and Tõnu Uustalu. The private limited company does not have a Supervisory Board. The establishment of a subsidiary is not considered to be an acquisition of a qualifying holding within the meaning of the regulations of the Tallinn Stock Exchange. The members of the Supervisory Board and Management Board of EfTEN Real Estate Fund III AS are not personally interested in the transaction in any other way.
The EfTEN Ermi OÜ, a 100% subsidiary of the Fund, signed a contract under the law of obligations with the Südamekodud AS to acquire a right of superficies (registry part no. 17851050) located at the Ermi Street 13, Tartu Parish, Tartu County where the fund plans to build an elderly care home for a minimum of 120 clients. The term of the right of superficies is 50 years, which can be extended by the agreement with the landowner until the end of the lifetime of the buildings. The maximum term of the right of superficies can be up to 99 years. To date, no construction procurement has been conducted and it is planned to carry it out after signing a real right contract. After the construction of the elderly care home, the Südamekodud AS will lease it on the basis of a long-term lease agreement (10 + 10 years). The transaction price of the right of superficies is 233,235 euros and the buyer takes over the obligations arising from the agreement on the establishment of the right of superficies. The purchase and investments are financed from the fund’s equity. In order to complete the transaction, the consent of the owner of the land plot on which the right of superficies is based – Tartu municipality, the conclusion of a lease agreement and the consent of the Estonian Competition Authority are required. After this a real right agreement will be singed for the transfer of ownership of the right of superficies.
The EfTEN Ermi OÜ is a 100% subsidiary of the fund established in the Republic of Estonia, with a share capital of 2,500 euros. The members of the Management Board of the private limited company are Viljar Arakas and Tõnu Uustalu. The private limited company does not have a Supervisory Board. The establishment of a subsidiary is not considered to be an acquisition of a qualifying holding within the meaning of the regulations of the Tallinn Stock Exchange. The members of the Supervisory Board and Management Board of EfTEN Real Estate Fund III AS are not personally interested in the transaction in any other way.
