We advised Baltic Horizon Fund, a real estate fund managed by the Norther Horizon Capital, on the sale of the G4S office building in Tallinn to HITS Investments.

Continued growth in the Baltics

This is the first-ever transfer of an item of the Baltic Horizon Fund portfolio. The sale price reached in a non-market agreement is EUR 15.35 million, plus VAT, which roughly corresponds to the latest valuation of the building. The proceeds from the sale will be used for new and more energy-efficient investments in the Baltics.

Forward-looking decision

The G4S office building was the first investment by the fund after going public on the Nasdaq Tallinn Stock Exchange in 2016. According to fund manager Tarmo Karotam, the investment has generated a large cash flow since it was made. „Now that the property is facing changes in tenants, it was prudent for the fund to manage the risk of future capital costs and resell the building to a local developer,” he added. The internal rate of return (IRR) of the investment for more than five years was approximately 11.2% and the equity ratio was 1.7.

Our services and client team

We advised Baltic Horizon Fond on all stages of the transaction, including negotiations, preparation of documents, as well as the finalization of the transaction.

Our client team included associate Andra Grünberg and partner Paul Künnap.