Invest where you live – or partner up
There is an old saying in real estate investment that you should focus on investing where you live. The notion is that it is difficult for an outsider to gain enough knowledge of a market if you are not living there, that you might miss key nuances of change that could affect your portfolio.
Is the old saying true, and how would one relate to it when it comes to investing in the Baltic commercial real estate market as a Swede?
First, it is reasonable to state that a geographical distance could be put in relation to the strength of the opportunity. Estonia for instance has one of the strongest public finances in Europe and a robust domestic demand. The Baltic region as a whole is taking advantage of globalization trends, with Swedish companies increasing their presence and outsourcing parts of the operations to the region. Past surveys show that a majority (70%) of Swedish companies consider the Baltics a good place to do business and 63 percent plan to invest further in the coming year.
On a second note, it can be interesting to highlight that Tallinn is actually geographically closer than many would think, being on a closer distance to Stockholm than Malmö. Being part of EU and with ever closer political, business and personal ties, Sweden and the Baltics are continuously further integrated.
Thirdly, Baltic Horizon Fund acts your local proxy and partner, the next best thing to living there yourself. With BHF you partner up with a team that has vast experience and local knowledge. The team has a great track record of property investments across the region – Northern Horizon group is the result of a merger in 2011 and manages 8 real estate funds across Baltic sea region, total assets under management exceed 1.2 billion EUR. The structure of the Baltic Horizon fund makes it possible for you to take advantage of a growing market teamed up with local experts.
You do business together with a team who understands the locations and can connect local events to the bigger development of the region. Who can combine looking at spreadsheets with looking outside the window. Who can hear the gossip on the town first and can connect it to opportunities. Who can understand and influence local retail trends and key political developments.
So it is fair to say that while the Baltics offer exciting opportunities it is neither very exotic or distant. In fact, by partnering up with local experts you can bridge the geocultural distance and take advantage of opportunities you might have dismissed in the past. Baltic Horizon Fund is the first listed fund to offer you this kind of opportunity and we hope you will find it exciting.