Upmala Biroji is an office building built in 2008 by a German developer Bauplan Nord. The building is anchored by SEB and CABOT on medium to long term leases and the property is fully leased out. Net leasable area is over 10,500 m2. The property is acquired approx. at a 7,25% yield based on the first full year. The closing of the transaction is expected to be finalized during the third quarter of 2016.
The deal adds on to a portfolio of quality cash-flow assets in Riga where the fund owns a neighborhood supermarket “SKY” on Bikernieku street. After the closing, the fund’s portfolio will be diversified 35% in Tallinn, 23% in Riga and 42% in Vilnius. Segment wise the portfolio shall consist of 43% office and 57% retail properties of which 10% is allocated to the leisure/retail property Coca Cola Plaza in the heart of Tallinn.
We are very satisfied to be able to complete another attractive office acquisition after the IPO with strong tenants and are now looking forward in the coming months to declare the first dividend in the history of the listed Baltic Horizon Fund. Additionally, this acquisition works very well from diversification and risk management point of view, both geography and segment wise, states Tarmo Karotam, fund manager of Baltic Horizon.
After selling the property, the developer Bauplan Nord continues to manage the property. “We are glad to sell this property to the long-term real estate fund Baltic Horizon and look forward to having a professional relationship with the new land lord and the tenants in the coming years”, concludes Mr. Jan Brink the board member of Bauplan Nord. “We are looking forward to continue our successful real estate development business in Latvia with new upcoming projects.”
Baltic Horizon units started trading on Nasdaq stock exchange on 6 July 2016. Baltic Horizon ticker is NHCBHFFT. The deal was advised by Sorainen from the buyer side and BNT law firm and Newsec from the seller side.
More information in Nasdaq announcement.