Baltic Horizon’s primary focus is to invest directly into commercial real estate located in Estonia, Latvia and Lithuania with a particular focus on the capitals – Tallinn, Riga and Vilnius.
The Fund will focus on established cash flow generating properties with potential to add value through active management within retail, office and logistic segments in strategic locations and strong tenants or quality tenant mix and long leases. Up to 20% of the Fund’s assets may be invested into forward funding development projects.
The Fund aims to use 50% long term leverage strategy. At no point in time may the Fund’s leverage shall exceed 65%. The Fund aims to continuously diversify the risks geographically, across real estate segments, across tenants and debt providers.
As an international asset manager Northern Horizon Capital is dedicated to good corporate governance principles. Baltic Horizon has an independent boards and we strive to have a transparent, fair and professional dialogue with our investors.
All our investments are guided by the following principles:
- We only invest in properties where our investors can expect a steady income stream and have a good chance of a medium-term capital gain.
- We are actively focusing on minimizing and managing any potential downside risks while protecting the full upside potential of our investments.
- We will refuse any investment opportunity which challenges our integrity or is in conflict with our mission statement and core values.
- Each individual property is assessed upon acquisition as well as on an annual basis by independent valuators in compliance with the International Financial Reporting Standards (IFRS) and local valuation methods.
- The investment portfolio of the Fund shall consist of at least 4 separate real estate objects.
- The Fund may directly or indirectly (through SPV) invest into single real estate object and (or) SPV no more than 30% of the Fund’s net asset value.
- The total sum of investments directly or indirectly (through SPV) into single real estate object and the movable property needed for its maintenance and (or) equipment cannot exceed 40% of the Fund’s net asset value.
- The Fund may invest into derivative instruments (including derivative instruments relating to real estate whose underlying are units or shares of real estate fund or shares of SPV-s investing into or managing real estate) no more than 20% of the Fund´s net asset value.