EfTEN Baltics Sustainable Property Fund

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Project ID 50770

Status Signed

Location

Regional

Business Sector

Real Estate

Notice Type

Private

Project timeline

Exploratory
Passed Concept Review
Passed Structure Review
Passed Final Review
Board Approved
Signed
Implementing
Completed

Project ID 50770

Status Signed

Location

Regional

Business Sector

Real Estate

Notice Type

Private

Environmental Category

Approval Date

25 Apr 2019

Disclosure date

25 Mar 2019

As per section 1.4.2 (iii) of the Directive on Access to Information: "For Projects approved by Bank management where the Board of Directors has delegated the approval authority, the PSD shall be disclosed at the start of the relevant no-objection notification period to a member country of the Bank in accordance with Article 13 (iii) of the Agreement Establishing the EBRD."

Translated versions of this PSD: Estonian | Latvian | Lithuanian

Project Description

Provision of an equity investment of up to EUR 30 million in favour of Usaldusfond EfTEN Real Estate Fund 4 (the "Fund"), a closed-end investment fund incorporated in Estonia. This would be the first green property fund in the Baltics with climate agenda and green objectives as an integral part of the business concept.

Project Objectives

The Fund's objective is to invest in high quality cash flow generating real estate assets across Estonia, Latvia and Lithuania (the "Region"). The Fund will invest primarily in the office, retail and logistics sectors mainly in the capitals and secondary cities of the Region. The Fund will become the first fund in the Region to integrate ambitious climate objectives and a focus on building sustainability alongside a commercial rationale. The Fund will also be the first in the Region to join the Global Real Estate Sustainability Benchmark ("GRESB"), an organization committed to assessing economic, social and corporate governance ("ESG") performance of real estate assets globally.

Transition Impact

The transition impact of the proposed project will come in particular from the following areas:

Green: EfTEN Baltics Sustainable Property Fund will be the first locally managed private equity real estate fund in the EBRD region with a green agenda, seeking commercial uplift through the implementation of mandatory sustainability measures. This strategy includes upgrade of physical assets infrastructure applying state-of-art techniques, introduction of professional resource efficient management services, engagement with asset occupants through green leases and reporting on sustainability using applicable international standards. Enhanced reporting of the sustainability performance of the Fund will support the replicability of the project and ultimately the development of Green-focused property funds as an asset class in the Region.
Resilient: The Bank's investment will support further strengthening of the Real Estate funds industry in the Baltics.

Client Information

USALDUSFOND EFTEN REAL ESTATE FUND 4

Usaldusfond EfTEN Real Estate Fund 4 is closed-end private real estate equity fund established in the form of a limited partnership incorporated in Estonia and fully controlled by EfTEN Neljas GP ("General Partner").

EBRD Finance Summary

EUR 30,000,000.00

Total Project Cost

EUR 126,000,000.00

Environmental and Social Summary

Categorised FI under the 2014 ESP. Environmental and Social risks associated with the property fund investing primarily in existing buildings in the Baltic Countries are readily addressed through formal risk management procedures. Environmental and Social Due Diligence (ESDD) was carried out based on the review of the completed ESDD Questionnaire by the client and follow up communication. The ESDD showed that the Fund currently does not have formal environmental and social risk management procedures for its investment activities. The Fund, therefore, is required to adopt the Bank's ES Risk Management Procedures for Equity Investment. The Fund will also adopt the Bank's green investment criteria. The Fund will be required to comply with PR2, PR4 and PR9 for all across of its investments as well as submit an annual environmental and social report to the Bank.

Technical Cooperation

The Bank will provide TC up to EUR 50,000 to support the implementation of all the Fund's sustainability criteria. Specifically, TC will support engagements with the tenants to prepare the green leases and also to enhance reporting on the sustainability.

Company Contact Information

Indrek Kaldoja
indrek.kaldoja@eften.ee
Page 3
+372 566 29102
www.eften.ee

Transition impact

ETI Score:67

PSD last updated

28 May 2019

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

Public Information Policy (PIP)

The PIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations. Please visit the Public Information Policy page below to find out how to request a Public Sector Board Report.
Text of the PIP

Environmental and Social Documentation is not available for this project.

Selected procurement notices related to this project may be shown below. Further procurement opportunities related to this and other projects, if available, maybe be viewed in the EBRD Procurement Portal.

The EBRD's Environmental and Social Policy (ESP), Access to Information policy (AIP) and Project Accountability Policy (PAP) enable sound and sustainable development in its projects. The Independent Project Accountability Mechanism (IPAM) deals with complaints about environmental, social and disclosure matters related to the Bank’s investments.

No complaints about this project have been made so far.

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