Following a successful capital raising Baltic Horizon has closed and taken over G4S Headquarters in Tallinn just days after listing on Tallinn Nasdaq Stock Exchange. Baltic Horizon now has a portfolio of 6 quality cash-flow objects in the Baltic Capitals worth in excess of €100 million.
G4S Headquarters was built in 2013. The property is located on arterial Paldiski road and has some 9,100 sqm of gross area. The property is leased on a long term basis to a global Danish security company G4S. The property was acquired at a 7.5 percent yield.
“We see this deal as delivering on our promise given to investors in the prospectus that we have an attractive pipeline of cash-flow properties which we can very quickly close with the newly raised equity,” said Tarmo Karotam, Fund Manager of Baltic Horizon. “We know the tenant G4S and their history and future aspirations well and believe to have them in the building on a long term basis.“
Priit Sarapuu, CEO of G4S Baltics welcomed the new lessor by saying that, “We believe in Baltic Horizon as a professional and prudent property owner which establishes solid ground for long-term cooperation.”
The public offering of Baltic Horizon units was successfully concluded on 29 June, 2016 together with the merger with Baltic Opportunity Fund. Baltic Horizon attracted gross equity of €29.7 million.
Baltic Horizon aims to be a stable dividend payer as the majority of its operating cash-flow will be paid out in regular dividends. Such attractive risk-adjusted dividend yield appeals to a wide range of investors looking for cash-generating assets in the low deposit rate environment. Fund’s investors are reputable Nordic and Baltic institutional and private investors. The deal adds on to a portfolio of quality cash-flow assets in the Baltic capital cities which includes Europa Shopping Center and Coca Cola Plaza in the heart of Vilnius and Tallinn respectively.