Investment strategy
Baltic Horizon Fund delivers value to investors through investments into commercial real estate in the Baltics and active management of the real estate portfolio.
Investment focus
Baltic Horizon’s primary focus is to invest directly into commercial real estate located in Estonia, Latvia and Lithuania with a particular focus on the capitals – Tallinn, Riga and Vilnius.
The Fund will focus on established cash flow generating properties with potential to add value through active management within retail, office and logistic segments in strategic locations and strong tenants or quality tenant mix and long leases. Up to 20% of the Fund’s assets may be invested into forward funding development projects.
The Fund aims to use 50% long-term leverage strategy. At no point in time may the Fund’s leverage exceed 65%. The Fund aims to continuously diversify the risks geographically, across real estate segments, across 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.