BPT Asset Management has launched a new fund, BPT Baltic Opportunity, which aims to invest in core real estate assets in the three Baltic countries. The new fund is the fourth BPT fund in the region.
After a couple of years of practically no transactions in the Baltic real estate markets, BPT is looking to change the scene with the launch of a new real estate fund for the Baltic countries, BPT Baltic Opportunity. The new fund has a maximum equity base of 100 million equivalent to an investment capacity of 200 million.
"The Baltic economies were among the quickest in Europe to politically embrace the economic challenges of the financial crisis, making the necessary changes and budget cuts. The reward now shows in their macroeconomic progress fuelled by rising exports and gradually decreasing unemployment numbers.
"The recent economic correction has naturally echoed in the real estate markets where prices have dropped as much as 40%. These days the market has stabilized at very attractive yield levels presenting some of the best investment opportunities in a decade," states Fund Manager Tarmo Karotam.
Focusing on core properties with international tenants and benefiting from a recovering market, attractive yield and rent levels, BPT Baltic Opportunity is targeting strong cash-flow investments in good locations with a projected IRR at fund level of above 15%.
Seed capital in place
BPT has already secured seed capital stake in the new fund with additional pool of capital expected to be raised at the next closing on March 16, 2011. Investments are expected to come primarily from the Nordic region as well as the Baltic countries themselves.
"Many Nordic investors understand the long-term potential in the Baltics and they recognize the timing is now. The interest towards the product has been increasingly positive both from private and institutional investors", explains Tarmo Karotam.
BPT Baltic Opportunity is structured as an unlisted closed-end Estonian Real Estate Investment Fund (REIF) under supervision of the Estonian FSA.
A Baltic expert in real estate asset management
BPT is a market leader in real estate asset management the Baltics with a history of four funds in the region. Established in 2001, BPT has a solid track record of some of the most noticeable transactions in the Baltics in the past decade. The spectrum of expertise covers everything from experienced real estate asset managers and finance staff to center planners, all with a blend of local and international know-how.
"The Baltic countries are home territory to us. We have an on-ground staff of approx. 45 professionals and a very strong local asset and property management teams in each country who know these markets intimately," says Tarmo Karotam.