The net asset value (NAV) of the EfTEN United Property Fund was €10.85 as of July 31, 2022, up 0.3% over the month. The fund’s assets amount to 27 million euros, of which nearly 10 million euros are uninvested.
In July, the fund made its first distribution of profits, paying out almost 212,000 euros to investors. With the payout, the fund’s performance over 12 months is 9.4%.
The summer was very quiet on the Baltic commercial real estate market. There were hardly any major transactions. The coming months will likely show whether this means a larger gap has opened up between buyers’ and sellers’ price expectations. In several major European cities, the first signs of growing risk aversion in the commercial real estate market are appearing. For example, the average interest rate on leverage in the office sector rose from 1% at the start of the year to nearly 5%. This is a level which in some cases is already higher than the rental income generated by these buildings. We can see if a similar situation will also affect the Baltic commercial real estate market when the first major bank loans and bonds in the sector will need to be refinanced.
A more detailed overview of EfTEN United Property Fund’s portfolio is available on the fund’s website: https://eftenunitedpropertyfund.ee/en/fund-results-2/
Head of Retail
Phone 655 9515