EstVCA member EfTEN Capital
has just announced that it entered into an agreement with UAB Etapas Group, a real estate developer, on the construction of two nine-story multi-apartment buildings in Kaunas. The project will produce completely installed and furnished apartments for families, to be rented on a long-term basis. EfTEN plans to invest 10 million euros in the project, solely with its own financing. This is the first investment by EfTEN Residential Fund in Lithuania.
“Family housing rental is the first EfTEN’s product in the Lithuanian residential market. We have seen that apartment sale prices have been growing fast and have noticed that the availability of this type of housing to young families has been reducing. Therefore, we believe that the new product we are going to offer will soon fill the open niche and will satisfy the need of families to rent new, modern, quality and turnkey furnished housing. We plan to purchase one more project in Vilnius based on the same principle of partnership,” said Viljar Arakas
, CEO of EfTEN Capital AS.
Two nine-story multi-apartment buildings will contain 48 one-bedroom (43-45 sqm) or two-bedroom (66 sqm) apartments each. The usable area of the buildings will total 4,940 square meters. In addition, a parking lot with 92 parking spaces (four of them for persons with disabilities) will be installed outside the buildings.
The development of the entire land plot will be conducted at the same time – apart from the two nine-story buildings, Etapas Group will build three more seven-story buildings in cooperation with private investors. The apartments of these three buildings will be offered for sale in the market. The construction has started and, according to plans, the first residents will be able to move into the multi-apartment buildings in early 2023.
A calm residential area at the entrance to Žaliakalnis residential district near the city centre was chosen for the investment. A number of schools and kindergartens can be found nearby as well as the largest healthcare establishment in Lithuania – Hospital of Lithuanian University of Health Sciences (LSMU) Kauno Klinikos.
To conclude the transaction, EfTEN used the services of a law firm Fort Legal, which acted as its representative.