Baltic Horizon Fund signed a real right agreement with HITS Investments OÜ to sell the land plot located in Paldiski mnt 80, Tallinn together with G4S office building. The sales price is EUR 15.35 million (excluding value-added tax) matching approximately the latest valuation. The IRR for the holding period of more than 5 years is around 11.2 percent, while the equity multiple is 1.7. The proceeds of the transaction will be used for new and more energy-efficient investments for the fund’s portfolio in the Baltics.
“This is the first disposal in Baltic Horizon Fund’s history and we are happy with the timing of this transaction through an off-market deal. The property was the first investment the fund had made after getting listed on Nasdaq Tallinn in 2016. The investment has been a great cash generator over the holding period but with upcoming changes in the tenant mix, it was reasonable to manage the future Capex risk by selling the property to a local developer,” commented Baltic Horizon Fund Manager, Tarmo Karotam.