Northern Horizon Capital has announced the plan for the next public offering of new units of Baltic Horizon Fund in November 2017.
The offering is intended to be aimed at all retail investors in Estonia, Sweden, Finland and Denmark and institutional investors in selected European countries. The target is to raise €20m to the fund for its existing acquisition pipeline with an option to increase the offering to €40m. The Management Company has submitted an application to register a new public offering and listing prospectus with the Estonian Financial Supervision Authority.
"The main purpose of this public offering is to close transactions of strategical importance for the fund and to unlock value add possibilities within the portfolio. Target properties, mainly located in central areas of Baltic capitals are, in addition to sustainable cash flows, expected to hold either expansion potential or upside in long term rental levels. Furthermore, with the offering it is aimed to increase the institutional investor base of the Fund, grow the net assets above €100m and thus diversify its holdings to achieve an increased level of dividends and overall returns for the periods ahead," commented fund manager Tarmo Karotam.
As of 30 June 2017 the gross asset value (GAV) of the fund was approximately €171m, average gross property yield approximately 7.2%, LTV 47.6% and cost of debt 1.8%. The fund’s most recent net asset value (NAV) is approximately €86.2m with total of 64 655 870 units outstanding. Since its first listing in Tallinn in July 2016 the Fund has made 4 quarterly cash distributions to its investors totaling 9.1 eurocents per unit. The largest tenants in the portfolio are G4S, Forum Cinemas (Finnkino), Swedbank, SEB Global Services, Cabot, Lindorff and Rimi (ICA group). All properties are located in the capital cities Tallinn, Riga and Vilnius.
AS LHV Pank and Prudentus Capital Oy have been appointed as financial advisors for the offering. Catella Corporate Finance Stockholm AB is expected to be engaged as financial advisor and Catella Bank S.A, including its Swedish branch is expected to be engaged as Sales Partner. KPMG Baltics is acting as auditor of Baltic Horizon Fund and legal counselling is provided by Sorainen.
