Fausto Capital Achieved Strong Growth in the First Half

Fausto Capital, which develops, leases, and manages office and commercial premises, had sales revenue of 4 million euros in the first half of the year, growing by 14%. Despite the difficult situation caused by the COVID-19 pandemic, which particularly affected the commercial real estate market in the real estate sector, Fausto Capital's earnings before interest, taxes, depreciation and amortization, or EBITDA, grew by 8%, reaching 2.6 million euros.

According to Fausto Capital's owner Kenneth Karpov, the growth resulted from the completion and leasing of new premises at Fahle Park, which demonstrates strong demand for office space at Fahle Park. "The rental market was surprisingly active for Fahle Park. In the first half of the year, 2,800 m² of new space was handed over to tenants. The largest lease agreement at Fahle Park in the half-year was concluded by Talgen Cybersecurity OÜ, the Argentina restaurant opened its doors, Fahle Animal Clinic, the Tallinn Art Space gallery is being completed, and several other rental spaces," said Karpov.

Fausto Capital's asset base reached 190 million euros at the beginning of this year, and the portfolio includes over 93,000 square meters of commercial and business premises, the most notable of which are Fahle Park, Kompass Building, Maakri HUB business building, Tartu Telia business building, Vironia Center, Rappeli Center, and additionally several Maxima and Selver shopping centers, among others. "Fausto's tenants have demonstrated strong payment behavior, and by June, most special agreements on rental terms related to the spread of coronavirus and store closures had also ended," commented Karpov.

The company remains well capitalized, the average interest rate on the group's loan agreements is approximately 3%, and Fausto continues its active development activities. "According to current plans, the 17-story Maakri HUB will open its doors next summer, which will bring 10,000 square meters of A-class office space to the commercial real estate market and provide competition to buildings in the tower building area of Tallinn city center. Fahle Park's development activities are moving to the next stage, and the Fahle Boiler House awaits renovation along with its chimney, which will be converted into Tallinn's new observation platform," said Karpov.