Northern Horizon Capital has launched its first Baltic public fund to be listed on the stock exchange

NOT FOR DISTRIBUTION OR RELEASE, DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART IN OR INTO THE UNITED STATES, CANADA, AUSTRALIA OR JAPAN OR ANY OTHER JURISDICTION IN WHICH THE DISTRIBUTION OR RELEASE WOULD BE UNLAWFUL. PLEASE SEE THE IMPORTANT NOTICE AT THE END OF THIS COMMUNICATION.

The management company aims to attract 30-50 mln EUR of new equity. Units are offered to the public only in Sweden. Raised capital will be used to purchase strategic centrally located cash flow generating commercial real estate primarily in Baltic capitals. Fund’s lifetime is evergreen.

“Conceptually, listed and tradable closed-end real estate fund will resemble REIT structure, a widely used investing platform in the Western world. Due to its tax transparent and cost-effective structure as well as focus on pay-out of majority of its generated cash Baltic Horizon will be the first such vehicle in the Baltic market.”, says Tarmo Karotam, the fund manager of Baltic Horizon.

“Commercial real estate in Baltics offer an attractive yield gap over comparable assets in Nordics and Warsaw of 2,5% and 1,5% respectively. Higher yields and low interest rates environment offer an attractive cash flow which will be disbursed to unit holders as dividends. At the same time asset values are expected to grow at a faster pace than in Nordics. The fund’s goal is to keep debt levels at a conservative level of 50%. The goal is to pay-out 7-9% dividends from invested capital per year which will be disbursed semi-annually or annually,” added Karotam.

Simultaneously with the completion of the capital raising Baltic Horizon will merge with another fund, Baltic Opportunity Fund, also managed by NHC. Baltic Opportunity Fund will cease to exist and Baltic Horizon will take over its assets as well as its investor base. After the merger Baltic Horizon is expected to exceed 60 mln EUR in equity capital. Baltic Opportunity Fund currently holds 5 assets worth approx. 90 mln EUR.

Swedbank and Catella act as co-lead managers of the offering. KPMG Baltics OÜ acts as the auditor of Baltic Horizon Fund and law firm SORAINEN acts as the legal counsel to Northern Horizon Capital.

IMPORTANT NOTICE:
This communication is not for distribution to United States newswire services or for dissemination in the United States, Canada, Japan or Australia or elsewhere where such dissemination is not appropriate. Distribution of this communication and other information in connection with the offering may be restricted by law in certain jurisdictions. Persons into whose possession this communication or such other information should come are required to inform themselves about and to observe any such restrictions.

No offer or invitation to acquire securities of the fund is being made by or in connection with this communication. Any such offer is made solely by means of the prospectus. Furthermore, the prospectus has been prepared on the basis that there will be no public offer of the units, other than the marketing to professional and retail investors in the territory of Sweden subject to receiving respective marketing authorisation by the Swedish Financial Supervision Authority and in accordance with Swedish Alternative Investment Fund Managers Act (2013:561). The prospectus and the Key Investor Information Document (KIID) are available on the NHC webpage (www.baltichorizon.com) and paper copies of the prospectus and the KIID including certain other information as referred to in the prospectus, can be obtained by professional and retail investors in Sweden from Catella Bank S.A. Swedish branch at Birger Jarlsgatan 6, 114 34 Stockholm in Sweden until the end of the offer period. Investors are advised to read both the prospectus and the KIID to understand the nature and the risks of investing in the fund and in order to make an informed decision about whether to invest.

In certain EU member states, units are marketed to professional investors in accordance with laws implementing Directive 2011/61/EU of the European Parliament and of the Council of 8 June 2011 on Alternative Investment Fund Managers, and also to other types of investors in reliance on certain exemptions available under the laws of each jurisdiction. In Switzerland, the units are marketed only to qualified investors. The securities referred to herein have not been and will not be registered under the US Securities Act of 1933, as amended, and may not be offered or sold in the United States or to US persons unless the securities are registered under the Securities Act, or an exemption from the registration requirements of the Securities Act is available. No public offering of the securities will be made in the United States.

This communication contains also forward-looking statements which involve risks and uncertainties. These statements are made on the basis of current knowledge and assumptions. Various factors could cause actual future results, performance or events to differ materially from those described in these statements. No obligation is assumed to update any forward-looking statements.

This communication cannot be construed as an investment advice or recommendation concerning the offering, nor a legal, business or tax advice. Each prospective investor should consult with its own professional advisers as to the suitability of, and associated risks with, any potential investment, or related legal, business and tax aspects.