EfTEN Sells Riga Logistics Hub for €9M in Strategic Capital Reshuffle

TALLINN, ESTONIA – February 10, 2026 – EfTEN Real Estate Fund AS, the largest real estate fund in the Baltics, has announced a strategic divestment of a key logistics property in Latvia, signaling a calculated move to reallocate capital and fuel future growth. The fund has entered into an agreement to sell its 100% subsidiary, EfTEN Krustpils SIA, which owns the DSV logistics building in Riga, to the Latvian company ROLANDS S, SIA.

The transaction, structured as a share deal, values the property at EUR 9.0 million. This represents a profitable exit for EfTEN, securing a price EUR 500,000 above the property's most recent balance sheet valuation of EUR 8.5 million. The deal is expected to close during the first quarter of 2026, subject to standard closing conditions.

A Profitable Exit to Fund Future Ventures

This sale exemplifies EfTEN's "value-added and opportunistic" investment strategy, which focuses on actively managing a diversified portfolio of cash-flow generating commercial properties. By divesting the Riga asset at a premium, the fund is crystallizing gains and freeing up significant capital for its next wave of investments.

According to the official announcement, the transaction will generate approximately EUR 5.6 million in net proceeds for the fund. Viljar Arakas, a member of EfTEN's Management Board, confirmed the strategic intent behind the sale, stating, "The proceeds of the transaction will be used as equity for the Fund’s new investments in future." This move underscores the fund manager's proactive approach to portfolio optimization, continuously seeking to sell assets that have reached valuation maturity to reinvest in opportunities with potentially higher returns.

The financial impact extends beyond the immediate profit. The transaction will reduce EfTEN’s total assets by EUR 9.0 million while simultaneously decreasing its bank borrowings by EUR 3.3 million. This deleveraging effect strengthens the fund's balance sheet, providing greater flexibility for future acquisitions and development projects.

A Bullish Signal for Riga's Logistics Market

The acquisition by ROLANDS S, SIA, a local Latvian firm specializing in logistics and real estate services, highlights the growing confidence within the domestic market. ROLANDS S, which provides warehousing, customs, and transportation services from its base in Riga, is making a significant investment to expand its owned property portfolio. This move by a local expert suggests a strong belief in the long-term value and operational importance of prime logistics facilities in the Latvian capital.

The deal comes at a time when the Latvian logistics real estate market is demonstrating remarkable resilience and growth. The sector is characterized by high demand for modern, energy-efficient spaces, which has kept vacancy rates exceptionally low. Recent market data from early 2024 showed the industrial vacancy rate in Latvia at just 2.5%, with a robust pipeline of approximately 124,000 square meters of new space under construction—much of which was already pre-leased before completion.

Rental rates for prime warehouse premises in Riga have remained stable and strong, ranging from €4 to €4.5 per square meter per month. EfTEN's successful sale of the DSV property at a valuation of EUR 9.0 million serves as a key benchmark, affirming the high investor appetite for well-located, high-quality logistics assets in the region.

Enhancing Shareholder Value Through Financial Dexterity

For shareholders of EfTEN Real Estate Fund AS, this transaction is more than just a property sale; it's a clear demonstration of the fund's commitment to maximizing returns. The EUR 5.6 million in net proceeds provides a substantial injection of capital that the fund can deploy strategically. This aligns with EfTEN's stated primary goal of being a dividend share, with a policy of distributing at least 80% of its annual free cash flow to investors.

The fund's management has already signaled a positive outlook for shareholder returns, forecasting a potential dividend of up to EUR 1.2 per share for 2025, an 8.1% increase from the previous year. The capital unlocked by the Riga sale is expected to be a key enabler of this enhanced dividend capacity and future growth.

Furthermore, EfTEN's management has indicated plans to increase financial leverage across its portfolio in 2025. At the end of 2024, the fund's loan-to-value (LTV) ratio stood at approximately 40%, below the typical European average of 50% for similar funds. By strategically increasing leverage, alongside reinvesting proceeds from sales like this one, EfTEN aims to amplify its investment power and returns. The fund has recently diversified into new logistics centers and the aged care home segment, both of which are identified as key areas for future capital deployment.

A Strategic Play by a Baltic Real Estate Powerhouse

While significant, the sale of the DSV logistics property is considered a part of normal business operations for a fund of EfTEN's scale. Following its 2023 merger that created the largest real estate fund in the Baltics with a balance sheet approaching EUR 400 million, EfTEN manages a vast and diversified portfolio of 35 investments. The fund's strategy involves not only acquiring new assets but also knowing the opportune moment to sell.

The property itself, located at Krustpils 31 in Riga, is tenanted by DSV, a global leader in transport and logistics. The presence of such a high-caliber tenant speaks to the quality and strategic location of the asset, making it an attractive purchase for ROLANDS S, SIA, which will now take over the landlord role. As stated in the release, the transaction is not considered significant according to NASDAQ Tallinn Stock Exchange rules, reinforcing that this is a tactical maneuver within a much larger, dynamic portfolio. This divestment is a classic example of active asset management, where realizing value from one investment becomes the catalyst for the next, ensuring the fund's continued growth and its ability to deliver returns for its retail investor base across the Baltics.