New Nursing Home Planned in Tallinn
EfTEN Real Estate Fund AS is taking a significant step forward in expanding its healthcare services by establishing a subsidiary dedicated to the construction of a new nursing home in Tallinn. This strategic move is aimed at addressing the growing need for quality assisted living facilities in the region.
Introduction of EfTEN Hiiu OÜ
The fund's 100% owned subsidiary, EfTEN Hiiu OÜ, has entered into a binding agreement with Südamekodud AS for the acquisition of a property located at Hiiu 42 in the Nõmme district. The contract marks a pivotal moment in the development of what will be known as "Nõmme Südamekodu," which is set to accommodate up to 170 residents.
Investment Details
The total sale price of the property has been fixed at four million euros. Upon completing the real rights agreement, the buyer is committed to investing an additional two point five million euros for the necessary renovations of the existing structure. Currently, planning for the building modifications is underway. The expected return on this substantial investment, excluding any bank leverage, is projected at an impressive 8%.
Partnership with Existing Care Institutions
Continuing in good faith, the North Estonia Medical Centre will maintain its operations on the property under a valid lease agreement. Following the transaction, the site will also be leased to Südamekodud AS, which is dedicated to providing the highest quality care services in Estonia. This company already operates multiple nursing homes across the country, including in locations such as Valkla and Tartu, managed under the same fund's other subsidiaries.
Financing the Project
The financing for this acquisition and the associated renovations will be sourced from the fund's equity raised through a share public offering (SPO) and a bank loan. This financial strategy ensures that the project remains robust and viable as it progresses.
Regulatory Approvals Needed
Before the completion of this property transaction, approval from the Estonian Competition Authority is mandated. Once this consent is acquired, the finalization of the real rights transfer agreement will allow for the official change in property ownership.
About EfTEN Hiiu OÜ
Based in Estonia, EfTEN Hiiu OÜ is a fully owned subsidiary of EfTEN Real Estate Fund AS, boasting a share capital of 2,500 euros. The company's management board includes experienced professionals, Viljar Arakas and Tõnu Uustalu, ensuring that the subsidiary remains aligned with the fund's strategic objectives. Notably, this establishment does not qualify as an acquisition of a significant holding according to the regulations set forth by the Tallinn Stock Exchange, indicating a streamlined process for stakeholders.
Contact Information
If you have inquiries or require further information, please feel free to reach out to:
Viljar Arakas
Member of the Management Board
Tel: 655 9515
Email: viljar.arakas@eften.ee
Frequently Asked Questions
What is the purpose of the new nursing home in Tallinn?
The new nursing home aims to provide quality care and residence for up to 170 clients in Tallinn.
Who is financing the construction of the nursing home?
The project is financed through the fund's equity raised from a public offering and a bank loan.
What role does Südamekodud AS play in this project?
Südamekodud AS will manage the nursing home, ensuring that high standards of care are met.
What is the projected return on investment for this project?
The expected return, excluding bank leverage, is projected to be around 8%.
How will the transaction be finalized?
The transaction will be completed once the approval from the Estonian Competition Authority is obtained.
