Hepsor and EfTEN Team Up for a New Housing Project
Hepsor AS is embarking on an exciting collaboration with the EfTEN Special Opportunities Fund, a trust fund managed by EfTEN Capital, to launch an exciting residential development project.
Joint Venture Agreement Details
As part of this partnership, Hepsor AS’s subsidiary, Hepsor Finance OÜ, entered into a shareholder agreement resulting in a 50% stake in Hepsor SOF OÜ being sold to the EfTEN Special Opportunities Fund. This stake sale establishes a solid foundation for the development project planned in Lasnamäe.
Property Acquisition Phase
Hepsor SOF OÜ will acquire certain properties from the Hepsor Group, valued at a total of 9 million euros, plus VAT. This includes properties situated at Paevälja pst 5, 7, and 9 in Tallinn, sold for 2.7 million euros, and additional properties located at Narva mnt 150 and 150a, bought for 6.3 million euros.
Expected Profits and Future Development
Hepsor stockholders are projected to earn around 3.7 million euros from these transactions, with 1.9 million euros anticipated to be realized in the next year. The released capital will support further development initiatives within the Hepsor Group.
About the Lasnamäe Development Project
The Lasnamäe project will feature the construction of nearly 300 apartments, supplemented by some commercial space. This undertaking will unfold in three phases, each showcasing around 100 brand-new homes. The inaugural stage of construction is scheduled to commence in the near future.
Previous Achievements in the Area
Hepsor previously completed the “Paevälja Courtyard Houses” project, which introduced an additional 100 homes to the market in 2023. With plans to develop about 500 new homes, Hepsor is strategically poised in one of Estonia’s most populous residential zones.
Acknowledging Market Potential
Lasnamäe enjoys a vibrant population similar to that of Tartu, and it is currently experiencing minimal competition in residential development. This aspect makes the project not only strategically essential but also commercially appealing for Hepsor.
Collaborative Vision for Quality Living
“Our partnership with EfTEN enables us to elevate the standard of living in Lasnamäe. Their reliability and extensive real estate expertise provide significant value to our project,” remarks Henri Laks, Chairman of the Management Board at Hepsor.
About Hepsor AS
Hepsor AS is a prominent developer of residential and commercial real estate, with operations spanning Estonia, Latvia, and Canada. Over its thirteen years in the industry, Hepsor has successfully constructed 2,076 homes and nearly 36,300 square meters of commercial property. Recognized as the first developer in the Baltic region to adopt innovative engineering solutions, the company focuses on energy-efficient and environmentally friendly construction practices. Currently, Hepsor's development portfolio includes 24 ongoing projects with a combined area of 172,500 square meters.
Frequently Asked Questions
What is the nature of the project between Hepsor and EfTEN?
The project involves the joint development of nearly 300 apartments and some commercial space in Lasnamäe.
When is the construction expected to start?
The construction of the first stage of the Lasnamäe development is planned to begin in the near future.
What are the financial benefits of this collaboration?
Hepsor's shareholders are projected to gain approximately 3.7 million euros from the current transactions.
How does this project fit into Hepsor's overall strategy?
This partnership reflects Hepsor's strategic goals to expand housing developments in densely populated and under-developed areas.
Who can be contacted for more information regarding the project?
For more details, you can reach out to Henri Laks, a board member at Hepsor, through his contact number or email.
