EfTEN Sells Vilnius Property
EfTEN United Property Fund Sells Menulio 7 Office Building in Vilnius
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EfTEN United Property Fund has sold the Menulio 7 office building in Vilnius, Lithuania, by agreeing to sell its subsidiary EfTEN M7 UAB to buyer M7 investicijos UAB. The deal, announced July 1, 2026, caps a four-year investment that will return a total profit of EUR 760,000 to the fund, according to GlobeNewswire.
The sale is part of a deliberate strategy to cut office exposure. EfTEN Capital's managing director Kristjan Tamla said the goal was to "reduce the share of office segment investments" in the portfolio. Proceeds will flow into residential development in Estonia and a retail center in Latvia.
A Four-Year Hold Ends With EUR 760,000 Profit
EfTEN bought the Menulio 7 building in March 2022 for EUR 3.598 million, according to Market Screener. The seven-story Class B office complex sits in central Vilnius and covers 3,710 square meters of leasable space. Key tenants included GlobalNetint and Saint-Gobain during the holding period.
Including dividends and interest earned over the four years, the fund's total profit from the investment reaches EUR 760,000, ADVFN reported. The buyer, M7 investicijos UAB, was incorporated on April 30, 2026 — just two months before the deal was signed — suggesting it was set up specifically to acquire this asset.
EfTEN Stays as Lender for Up to 17 More Months
The deal has an unusual structure. The buyer must repay a EUR 2.899 million shareholder loan to EfTEN over a maximum of 17 months. The loan carries a 9% annual interest rate for the first 12 months. If not repaid by then, the rate jumps to 12% for the remaining five months, according to GlobeNewswire.
This means EfTEN is not fully walking away. By holding the loan, the fund trades a depreciating real estate asset for a high-interest debt instrument. The buyer must also repay the subsidiary's existing bank loan in full immediately upon closing.
Class B Offices Fall Out of Favor Across Vilnius
The Menulio 7 exit is not a one-off. In June 2026, a sister fund — EfTEN Real Estate Fund AS — sold the nearby Menulio 11 office building, according to Market Screener. Both properties sit in the same Vilnius district. The back-to-back sales point to a coordinated effort to exit older office stock in that area.
Vilnius office vacancy has risen for Class B buildings as tenants move to newer, greener Class A spaces. Estonian institutional funds like EfTEN are stepping back, while local Lithuanian buyers such as M7 investicijos step in. The shift mirrors a broader post-pandemic trend where office demand has weakened for older properties across the Baltic capitals.
Fund Redirects Capital Into Homes and Retail
The proceeds from the Menulio 7 sale are already earmarked. EfTEN plans to invest in a residential development project in Rae municipality, Estonia, and acquire a retail center in Riga, Latvia, according to ADVFN. Both sectors have shown more resilience than offices in the post-pandemic environment.
The fund's units trade on Nasdaq Tallinn under ticker EFCUPFFT. They were stable at around EUR 9.48 following the announcement. The fund paid a quarterly dividend of 42.676 euro cents per unit as recently as June 2026, and the profit from this sale is expected to support future payouts.
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