“Evernord Asset Management, the asset management company belonging to the Evernord Group, has seized a favourable opportunity to realise the value created by closing its fund Evernord Real Estate Fund II, which manages an office building in Tallinn, a year and a half ahead of schedule.

“Evernord Real Estate Fund II was established in June 2019 and was a EUR 10 million fund invested in Buroo 31, a 6-storey office building in Tallinn.

“The uncertainty in the market and concerns about declining liquidity helped us decide. Especially as there was a strong offer from a buyer on the other side of the scale. I am confident that the decision to exit early with an agreed price is in the best interests of investors and is appropriate from a risk management perspective. The return of funds will allow investors to take advantage of new investment opportunities. Equity is becoming a crucial factor in the context of the high cost of borrowed funds,” notes Jolanta Jurga, Director of Evernord Asset Management.

Over the last year and a half of the fund’s operation, the company has been interested in the possibility of realising the building earlier than planned on favourable terms. During this period, four negotiations have been held with potential buyers of the Tallinn building managed by the fund.

The sale of the building was finalised on 15 December, immediately followed by a decision to liquidate the Fund. All units of the Fund were redeemed from investors by the end of 2022.

The building in Tallinn, managed by Evernord, is currently fully let and has a well-diversified tenant base. The building has an annual yield of 6%. The fund’s investors’ internal rate of return (IRR) was 14.3%.