Ektornet, which is the company that buys up problem properties from Swedbank, may become one of the largest, if not the largest, property companies in the Baltic States by 2013.
In their last economic report, the managers of Swedbank wrote that they plan to increase Ektornet's portfolio to 8.5–17 billion kroons by 2013.
75 per cent or 6.3–12.7 billion of this should be located in the Baltic States, which means that the company may become the region's biggest property company. For the Swedes, this means that the Baltic States are priority number one, as the impact of the results achieved here on the entire group is vast.
The assets of Ektornet currently total two billion kroons – 590 million in Estonia, 386 in Latvia and 176 in Lithuania. This means that a little more than a half of the purchased property is in the Baltic States and the company must grow at least six times to achieve its goal.
What is Ektornet? It is a company established by Swedbank last year, which purchases the unfinished buildings and land of property developers who are unable to repay their loans to the bank. Property is purchased at auctions as cheaply as possible and put on hold for better times.
SEB Bank, for example, has a similar company called Estectus, but the amount of its assets is currently considerably lower – 126.4 million kroons in Estonia.
Director of Ektornet Meelis Shokman says that the primary goal of the company is to stop the decrease in the value of property or conservation of purchased properties, stopping the deterioration of unfinished buildings and guaranteeing maintenance. Its second goal is to increase the value of property, which can be achieved with the preparation of detailed plans for plots of land.
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