Investment strategy

Baltic Horizon Fund invests in commercial assets in strategic locations in the Baltic capital cities.

Investment focus

The Fund’s primary focus is to invest directly in commercial real estate located in Estonia, Latvia, and Lithuania, particularly in the capitals - Tallinn, Riga, and Vilnius.

The Fund’s focus is on established cash flow generating properties with potential to add value through active management within the retail, office, leisure and public assets segments in strategic locations and strong tenants or a quality tenant mix and long leases.

The Fund aims to use a 50% long-term leverage strategy. At no point in time may the Fund’s leverage exceed 65%.

The Fund aims to grow through making attractive investments for its investors while diversifying its risks geographically, across real estate segments, tenants and debt providers.

Investing principles

All our investments are guided by the following principles:

Investments

We only invest in properties where investors can expect a steady income stream and a good chance of a medium-term capital gain.

Focus

We actively focus on minimizing and managing any potential downside risks while protecting the full upside potential of investments.

Integrity

We will refuse any investment opportunity which challenges our integrity or conflicts with our mission statement and core values.

Assessment

Each property is assessed upon acquisition and on an annual basis by independent valuators in compliance with IFRS and local valuation methods.

Portfolio

The investment portfolio of the Fund shall consist of at least 4 separate real estate objects.

Single real estate objects and SPV

No more than 30% of the net asset value may be invested directly or indirectly into single real estate object and (or) SPV.

Total sum of investments

The total sum of investments directly or through SPV into single real estate object and the movable property for maintenance, et cetera cannot exceed 40% of the net asset value.

Derivative instruments

No more than 20% of the net asset value may be invested into derivative instruments.