Estonia, Financial Services, Funds, Good for Business, Lithuania, Real Estate

Baltic Horizon Fund signed an agreement with closed-end investment undertaking intended for informed investors UAB Prosperus Strategic RE Fund to acquire the North Star business center.

The purchase price is approximately 20.7 mln euros, which corresponds to an estimated entry yield of approximately 7.3%. The transaction is expected to close during fall and is conditional upon capital raising by way of private placement of Baltic Horizon Fund units to be arranged by Northern Horizon Capital as the management company of Baltic Horizon Fund.

North Star is a well-located office building near the central business district of Vilnius. Within its 10,600 sq.m. leasable area it houses various strong tenants with anchor tenant being the Lithuanian State Tax Inspectorate. The office complex also includes an underground parking facility with 370 places.

As part of the transaction, the seller has agreed to subscribe for Baltic Horizon Fund units for the amount of 5 mln euros. Northern Horizon Capital shall arrange issuance of new fund units, the number of which is equal to the subscription amount divided by the latest net asset value per fund unit by way of private placement. The issuance and listing of new units is expected to take place shortly after closing.