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Northern Horizon Capital AS (the Management Company) announces the plan for the next public offering of new units of Baltic Horizon Fund (the 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 EUR 20 million to the Fund for its existing acquisition pipeline with an option to increase the offering to EUR 40 million. 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 EUR 100 million 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 EUR 171 million, 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 EUR 86.2 million 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.
The Fund is a registered contractual public closed-end real estate fund that is managed by Alternative Investment Fund Manager license holder Northern Horizon Capital AS.
Distribution: Nasdaq, GlobeNewswire, www.baltichorizon.com
This announcement contains information that the Management Company is obliged to disclose pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the above distributors, at 8:00 EET on 27th of October 2017.
The information contained herein is not for release, publication or distribution, in whole or in part, directly or indirectly, in or into the United States, Australia, Canada, Hong Kong, Japan, New Zealand, Singapore, South Africa or such other countries or otherwise in such circumstances in which the release, publication or distribution would be unlawful. The information contained herein does not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of, the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration, exemption from registration or qualification under the securities laws of any such jurisdiction.
This communication does not constitute an offer of securities for sale in the United States. The securities have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the ”Securities Act”) or under the applicable securities laws of any state of the United States and may not be offered or sold, directly or indirectly, within the United States or to, or for the account or benefit of, U.S. persons except pursuant to an applicable exemption from, or in a transaction not subject to, the registration requirements of the Securities Act.
This communication does not constitute an offer of securities to the public in the United Kingdom. No prospectus has been or will be approved in the United Kingdom in respect of the securities. Consequently, this communication is directed only at (i) persons who are outside the United Kingdom, (ii) persons who have professional experience in matters relating to investments falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the ”Order”), (iii) high net worth entities falling within Article 49(2) of the Order and (iv) other persons to whom it may lawfully be communicated (all such persons together being referred to as ”relevant persons”). In addition, this communication is, in any event only directed at persons who are ”qualified investors” pursuant to the Prospectus Directive (2003/71/EC, as amended). Any investment activity to which this communication relates will only be available to, and will only be engaged with, relevant persons. Any person who is not a relevant person should not act or rely on this document or any of its contents.