Favorte Real Estate Development is the first real estate fund in the Baltics dedicated to the development of modern stock-office buildings. This innovative concept, developed in Estonia, is based on the favorable business conditions and rapidly growing community of high-growth companies in the region. Today, thousands of small and medium-sized enterprises require new and flexible office spaces to accommodate and support their accelerated business activities.

Stock-office rentals, which combine warehouse, production, office, and showroom spaces, are the ideal solution for these fast-growing companies. Led by Riho Unt, with extensive experience as the CEO of SEB Bank in Estonia and the Baltics, and Rainer Hinno, the successful owner of Favorte, a renowned real estate development company operating in Estonia for nearly 30 years, the fund is driving the development of stock-office buildings and has become one of the largest in Estonia. The fund was established in June 2021 and is managed by Rari Capital Management OÜ, a registered entity in the Estonian Financial Supervisory Authority.

Grant Thornton Baltic OÜ is the fund's auditor. The stock-office concept is gaining popularity in the Baltic countries due to the rapid growth of e-commerce. With consumers in the Baltics valuing fast delivery, having a sufficiently sized warehouse near their target market provides a significant competitive advantage for businesses.

Additionally, the consolidation of all company personnel under one roof ensures convenient accessibility for both employees and logistics providers. Furthermore, stock-office buildings are energy-efficient, employee-friendly, and environmentally conscious, with a small carbon footprint and low operational costs. By choosing a stock-office property, companies can contribute to a more sustainable world while saving on energy and operating expenses.

With a strategic investment approach aimed at sustainability and environmental balance, Favorte's stock-office buildings provide modern and flexible workspaces for various businesses, allowing even smaller players to benefit from eco-conscious entrepreneurship without incurring significant additional costs. All of Favorte's developments are designed to facilitate car-free commuting and easy access for cargo vehicles, with minimal impact on the surrounding environment. These buildings are highly energy-efficient, meeting at least A-energy class standards, and provide a unified workspace for all business operations, fostering an inspiring work environment.

They are also constructed using low-carbon-footprint materials and systems and promote waste recycling and resource reuse. Moreover, these buildings can be easily and cost-effectively adapted to meet the evolving needs of tenants. With an average size ranging from 2,000 to 6,000 square meters, stock-office spaces cater to companies of varying sizes, including high-growth enterprises and traditional small and medium-sized businesses.

Rental requirements typically fall within the range of 100 to 1,000 square meters, and businesses can customize the space to suit their specific needs. As a result, companies can expand their operations comfortably without having to relocate or incur unnecessary costs and disruptions. Approximately 60% of stock-office tenants operate in retail or wholesale trade, while these spaces are also popular among small-scale manufacturing and service companies.

In essence, stock-office solutions meet up to 70% of the spatial requirements for the Baltic business sector. In addition to their functionality and cost-effectiveness, stock-office buildings also provide a sustainable business approach, enabling companies to conserve energy and natural resources while saving on operational costs. Favorte's investment strategy aligns with the global goal of achieving sustainability in terms of environmental, social, and economic balance.

The properties developed by the Favorte stock-office fund offer modern and flexible business spaces, providing smaller enterprises with an opportunity to participate in eco-conscious entrepreneurship without incurring significant additional costs. These properties are strategically located to facilitate car-free commuting and easy access for cargo vehicles, while minimizing environmental impact. In addition, they meet high energy efficiency standards (at least A-class) and create a unified platform for companies' entire operations, fostering an inspiring work environment.

Furthermore, the properties are constructed using materials and systems with a low carbon footprint, consume and produce green energy, and promote waste recycling and resource reuse. They are designed to be easily and cost-effectively adaptable to meet the rapidly changing needs of tenants. The Favorte Real Estate Development team is led by Rainer Hinno and Riho Unt, with Marge Keerig serving as the CFO and Mart Saa as a recognized real