Baltic Horizon plans follow-on offering and second listing in Stockholm
Baltic Horizon, a recently listed closed-end real estate fund is planning a follow-on public offering in Estonia and Sweden with possible offering also in Finland and Denmark, thus targeting a very wide regional investor base. The fund targets raising up to EUR 80 million for its existing acquisition pipeline.
While the fund is already listed on the Nasdaq Tallinn Stock Exchange, it is now planning to become the first listed Alternative Investment Fund also on Nasdaq Stockholm. Baltic Horizon will be registering a new prospectus in the coming months with the Estonian Financial Supervisory Authority.
Fund manager Tarmo Karotam commented on the future plans: “We believe that many investors in the present very low interest rate environment are yearning to gain attractive risk-adjusted returns on their investments. Bricks and mortar cash flows have always been a classical way to provide such returns and our targeted dividend yield from our Baltic investments remains at 7-9% p.a. The strategy is to continue acquiring established cash flow generating commercial properties with strong tenants in the Baltic capitals at low leverage. In addition, growing our portfolio with the attractive pipeline allows for higher risk diversification across tenants, asset classes and cities while decreasing proportional administration costs.“
In June 2016, Baltic Horizon raised EUR 29.7 million in its initial public offering to become the first Baltic real estate fund that has been listed. Two new acquisitions were made with the offering proceeds shortly thereafter. Fund‘s portfolio is worth around EUR 125 million and has an occupancy of approximately 97%.
Catella has been appointed as the Global Lead Manager of the Offering and Lead Manager of the retail offering in Sweden and possibly Finland and Denmark. Catella shall also act as a Lead Manager of the Institutional Offering in the Nordics, Luxemburg and other selected European markets. Swedbank is in the process of being appointed as the Lead Manager of the offering in the Baltics with LHV Bank as Co-Manager. KPMG Baltics is the acting auditor of Baltic Horizon Fund and legal counselling is provided by Sorainen.
Baltic Horizon Fund is a registered public closed-end real estate fund and Baltic Horizon units began trading on the Nasdaq Baltic Fund list of July 6, 2016. The company’s stock symbol (ticker) is NHCBHFFT.
The fund is managed by Northern Horizon Capital AS under an Alternative Investment Fund Manager license granted by the Estonian Financial Supervision Authority.
Nasdaq announcement can be found here.
Baltic Horizon Fund manager