Estonia, Financial Services, Funds, Real Estate

International Internet Magazine. Baltic States news & analytics Tuesday, 16.09.2014, 10:24

EfTEN: optimism has disappeared from the Estonian real estate market in 2012

Juhan Tere, BC, Tallinn, 23.08.2012.Print version
The EfTEN real estate fund created by major Estonian entrepreneurs earned 1.5 million euros in net profits in the first half of 2012, but the fund’s report notes that majority of optimism about the future has disappeared from the Estonian real estate market, writes Äripäev.ee/LETA.

EfTEN managed to increase its six-month net profits 14% in the year-on-year comparison; while in 2011, the impact of the revaluing of real estate investments in the first half of the year on the net profits amounted to 0.92 million euros, during the same period of time in 2012 the indicator was 0.47 million euros.

 

When making projections about the future, fund managers remain cautious. “Major optimism towards the future has disappeared from the Estonian real estate market; the escalating debt crisis in Europe is deepening and hence the outlooks for the economic environment are unclear,” states the report. “High inflation outlook in turn increases interest in real estate as assets that protect one against inflation, yet in the given obscure situation it is difficult to predict a continued increase in rent or decline in levels of returns on investments,” noted EfTEN.

 

The EfTEN Real Estate Fund is an investment fund investing into commercial real estate projects that was established by EfTEN Capital in 2008.






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