Everaus Real Estate AS Reopens Public Bond Offering

Everaus Kinnisvara AS begins on October 8th with the public offering of the second series of the company's bond issue. The subscription for Everaus Kinnisvara's second series bonds lasts until October 17th, and during the issue, investors in the Baltic states will be able to acquire the company's bonds with a 10% annual interest rate, which will also be listed on the First North Baltic bond list.

Main terms of the offering

The bonds are offered publicly to institutional and retail investors in Estonia, Latvia and Lithuania. The total value of the offering is up to 3 million euros. The nominal value of one bond is 1000 euros and the redemption date of the bonds is 22.10.2028. The fixed interest rate of the bonds is 10% per annum and interest payments are quarterly.

More detailed terms of the bond offering are available on the company's website at https://everaus.ee/investorile/ and on the NASDAQ Tallinn website.

Indicative schedule of the offering

About the company and the bond issue

Everaus Kinnisvara is an ambitious residential and commercial real estate developer. Starting as a house developer in 2015, the company has since grown into a developer with a diverse portfolio, which includes apartment buildings, townhouses, semi-detached houses and single-family homes, office buildings, warehouse and stock-office spaces and mini warehouses, as well as residential plots and guest apartments. While residential real estate projects are intended for sale, commercial real estate is developed for risk diversification purposes as rental cash flow projects, and the constructed commercial buildings are retained in the company's own ownership. The company operates in Estonia, mainly in Harju County, but is also expanding to Tartu County and Latvia. Everaus Kinnisvara's development portfolio includes 600+ residential units and 80,000+ m2 of commercial space.

Everaus Kinnisvara AS opened its first public bond offering this May, issuing 5000 bonds in the first series of its bond program for a total amount of 5 million euros. The issued bonds are tradable on the alternative market of Nasdaq Tallinn stock exchange First North.

The funds raised in the first series have been used purposefully and with their support, the construction of real estate development projects has progressed rapidly. The infrastructure of Kindluse Kodu Phase I (townhouses and semi-detached houses) is complete and the first houses have reached full height (50% of Phase I homes have been sold). Luige Kodu Phase II (townhouses and apartment buildings) houses have reached the facade and internal construction work phase (30% of Phase II homes have been sold). The construction works of Lennuradi warehouse complex Phase II and Haabersti mini warehouses are in the final stages and new commercial buildings in the developer's rental portfolio will be ready by the end of this year.

The goal of the second series is to additionally finance the construction of the next phases of development projects and to begin construction of new development projects. The construction of infrastructure for the next phases of Kindluse Kodu has begun and the construction of Luige Kodu Phases III and also the final phase (townhouses) of houses and the construction of the last two buildings of Lennuradi warehouse complex. In preparation is the start of construction of Kangru Kodu townhouses and apartment buildings located on the border of Tartu that were added to the portfolio.

Management commentary

„The more than threefold oversubscription of the spring offering confirmed that we are valued and recognized as a real estate developer not only in the eyes of our clients and business partners, but also that investors trust our growth prospects and our strategy to develop quality and sustainable residential and business environments. The second series offering allows us to expand the company's investor community even further," commented the company's founder and CEO Janar Muttik, adding that Everaus Kinnisvara's competitive advantage and strength in the eyes of investors is the diversity of its portfolio and distributed risks. "Different real estate segments behave differently during economic cycles. When the housing market cools down, the commercial real estate sector, such as warehouse spaces, can continue to perform well thanks to e-commerce growth or logistics needs. This allows us to compensate for lower income from one segment with growth from another segment," explained Muttik, adding that "the diversity of projects also allows us to flexibly redirect capital, investing in the most profitable projects at the moment. When the apartment market was in a downturn, premium-class real estate and residential plots that stood out from what was offered on the market, whose clientele were not as affected by market fluctuations, were an important advantage for us. Such a strategy ensures sustainability and growth even when one or another market segment is in decline."