Baltic Horizon Fund signed an agreement with closed-end investment undertaking intended for informed investors UAB “Prosperus Strategic RE Fund” to acquire business centre “North Star” in Vilnius, Lithuania. The purchase price is approximately €20.7m, which corresponds to an estimated entry yield of approximately 7.3%. The transaction is expected to close during autumn and is conditional upon capital raising by way of a private placement of Baltic Horizon Fund units to be arranged by Northern Horizon Capital as the management company of Baltic Horizon Fund.
North Star is a well-located office building near the central business district of Vilnius. Within its 10,600m² leasable area, it houses various strong tenants with anchor tenant being the Lithuanian State Tax Inspectorate. The office complex also includes an underground parking facility with 370 places.
“We are pleased to bring North Star into our Vilnius office portfolio and are in general content to strengthen the fund’s position in the Baltic office segment,” commented fund manager Tarmo Karotam.
As part of the transaction, the seller has agreed to subscribe for Baltic Horizon Fund units for the amount of €5mn. Northern Horizon Capital shall arrange the issuance of new fund units, the number of which is equal to the subscription amount divided by the latest net asset value per fund unit by way of private placement. The issuance and listing of new units is expected to take place shortly after closing.
