Northern Horizon Capital AS ,the management company of Baltic Horizon Fund, has signed an agreement for the acquisition of the Postimaja Shopping Centre in Tallinn, Estonia from Osaühing Letona Properties.
The key strategical considerations for the Fund making the transaction is the synergy opportunity arising from Postimaja being located next to Coca-Cola Plaza property, already belonging to the Fund’s portfolio and the Tallinn’s Main Street project. HG Arhitektuur OÜ has been selected as the partner to work out the architectural solution. It includes a new exterior design as well as works to increase the leasable area.
The rounded total purchase price to be paid at closing is €34.4m (+ VAT), with €30.8m allocated to be paid for the existing cash flow from Postimaja and €3.6m to be paid for the potential additional cash flow deriving from the possible extension.
The expected acquisition yield for the existing cash flow is approximately 6%, the expected acquisition yield for the total purchase price is approximately 5,4%. The total current leasable area of Postimaja is 9141m². The anchor tenants are Rimi, H&M, New Yorker, Estonian Post and MyFitness.
As a part of the transaction, CA i Estland AB, a company belonging to the same group as the Osaühing Letona Properties, has subscribed for the Fund units for the amount of €2.35m.
