Baltic Horizon Fund to sell Meraki Business Home in Vilnius

Baltic Horizon Fund recently announced a structured process to dispose of certain real estate assets where the Fund does not see significant short-term opportunities for further value optimization.

The owner of Meraki Business Home in Vilnius, BH Meraki UAB, an SPV of Baltic Horizon Fund, signed a real estate sale and purchase agreement with Groa Real Estate Opportunity Fund UAB, a fund managed by Groa Capital, to sell Meraki Business Home in Vilnius, Lithuania.

The Meraki office building development commenced in 2019, and the first tower was completed in August 2022. The project included a second tower that has not been realized. The development was affected by COVID-19 as well as the high inflation rate levels.

“Despite difficult conditions, we have been able to achieve a close to 90 percent occupancy level for the property. Today, Meraki remains as one of the most modern buildings in the area, which is also confirmed by its BREEAM Excellent New Construction certification,” commented Fund Manager Tarmo Karotam.

“We are pleased with the purchase of the Meraki office building as this acquisition will enable Groa Capital to grow our portfolio of quality office buildings. We believe that this also presents an attractive opportunity for Groa Capital to build the second Meraki tower with around 8,500 sqm,” commented Nerijus Dagilis, CEO of Groa Capital. “We will start discussions with potential tenants immediately upon the closing of the transaction,” further added CEO of Groa Capital Nerijus Dagilis.

The sales price of the asset is approximately €16 million, which is close to the latest valuation. The proceeds of the transaction will be used to redeem €3 million of Baltic Horizon Fund bonds and repay the loan from Bigbank.

“Baltic Horizon Fund is in the process of deleveraging and has been decreasing its allocation in the B-class office segment since 2021. With the proceeds, the Fund plans to reduce its debt level and increase liquidity for its operations,” added fund manager Tarmo Karotam.