EfTEN Real Estate Fund acquires Magistral shopping centre

EfTEN Real Estate Fund has purchased the Magistral shopping centre in Tallinn, Estonia, from EfTEN Kinnisvarafond II.

Magistral shopping centre

This transaction occurred as EfTEN Kinnisvarafond II reached the end of its term, necessitating the sale of its 100% stake in Magistral Kaubanduskeskuse. The acquisition, conducted between two funds managed by the same entity, followed the Investment Funds Act and was authorised by the fund's shareholders in April 2026.

The sale price was based on an end-of-May valuation of €31.7 mln for the real estate, assessed by Colliers International Advisors. Both funds' supervisory boards approved the price, resulting in an entry yield of approximately 8.1%.

The Magistral shopping centre becomes the third-largest single investment in EfTEN Real Estate Fund's portfolio. This acquisition boosts the fund's real estate investment portfolio by 8%, pushing its total value over €400 mln, and is expected to increase annual net rental income by about €2.5 mln.

Located in the densely populated Mustamäe district of Tallinn, the Magistral shopping centre, which opened in 2000 and was expanded in 2012, is a well-established community service provider. It currently boasts a 98.5% occupancy rate with 72 tenants.

The management board of Magistral Kaubanduskeskuse, consisting of Viljar Arakas and Tõnu Uustalu, remains unchanged after the transaction.