Estonia, Good for Business, Real Estate

International Internet Magazine. Baltic States news & analytics Wednesday, 19.06.2019, 10:17

Eften cleared to buy ABC Group's car service center properties in Tallinn

BC, Tallinn, 04.01.2019.Print version
Eften Kolmas OU, a subsidiary of the listed property investment fund Eften Real Estate Fund III, has received permission from the Estonian Competition Authority to acquire ABC Group's car service center properties on Paldiski Road in Tallinn, reported LETA/BNS.

The Estonian Competition Authority issued its clearance on Friday.

The properties are to change hands for 3 mln euros exclusive of VAT.

ABC Motors, a company selling and maintaining Renault and Dacia vehicles, will continue servicing customers there as before. The properties will be acquired from ABC Vara AS and after the transaction enters into force, Eften will lease the properties back to ABC Motors, the company announced.

Mart Vips, chairman of the supervisory board of ABC Group, has said that the aim of ABC Group is not to own the real estate in use by the companies and the preference is to invest its assets into developing the group's main activities.

The total area of the center on the properties is approximately 2,400 square meters and the total area of the properties to be acquired is 9,008 square meters. 

Founded by fund manager Eften Capital in 2015, Eften Real Estate Fund III AS is a public closed-end alternative investment fund which invests in cash flow generating commercial properties in the Baltic states and has been listed on the Baltic Main List.

The Eften Capital group manages 43 commercial buildings with more than 1,100 tenants. The market value of the buildings managed by it is approximately 600 million euros.

ABC Motors AS is part of the ABC Group and the main area of activity of the company is the sale of new and second-hand cars, the sale of car parts and car service. The company represents the Renault and Dacia brands. ABC Motors has been active for 16 years and operates with two car centers and one sales lot. The sales revenue of the company totaled 40 mln euros in 2017, which was 14% higher than the year before. Last year, altogether 2,407 new cars were sold.

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