Nordea Bank has granted 11.75 million euros to the Baltic Horizon investment fund to purchase and develop the Upmalas Biroji office building. Since the transaction, Baltic Horizon’s portfolio now consists of seven properties worth over 125 million euros.
Nordea Bank’s loan of 11.75 million euros was used to purchase the Upmalas Biroji office building, which was built in 2008 and has a leased area of over 10,500 m2. The German developer Bauplan Nord, which built the office centre, will continue to manage the property.
‘Business success and a healthy atmosphere at a company are the result of an orderly and pleasant environment that can be ensured only by high-quality and sustainable modern buildings. With its lengthy experience, Nordea is satisfied that the business aspect of this strategy is very effective and rewarding for both staff and customers in the long term. I am happy that we can participate in the new owner’s plans to maintain and develop this standard’, says Jānis Buks, Head of Banking Latvia at Nordea Bank.
This substantial transaction increases the portfolio of high-quality cash-flow assets in Riga. The investment fund portfolio is currently well diversified, consisting of 35% in Tallinn, 23% in Riga and 42% in Vilnius. From the point of view of segments, the portfolio is divided into office buildings (43%) and retail trade properties (57%).
In receiving this financing, Baltic Horizon’s management is happy to commence long-term cooperation with Nordea Bank. In relation to seven properties owned by the fund, we are currently cooperating with four different banks in the Baltic states that provide us with necessary diversification among sponsors’, says Tarmo Karotam, Head of the Baltic Horizon Fund.
On 6 July 2016, Baltic Horizon structural units started trading on the Nasdaq stock exchange. Baltic Horizon’s trading code is NHCBHFFT. The transaction was announced by Sorainen on the part of the purchaser and by the BNT law firm and Newsec on the part of the seller.
In 2013, Upmalas Biroji received the Most Sustainable Building in Latvia Award. The building also received an award for Innovative and Energy-Efficient Technical Solutions Made in Germany. The property with medium-term and long-term lease agreements was ensured by SEB Bank and Cabot Latvia LTD, and it is being fully leased.
About Baltic Horizon:
Baltic Horizon is a regulated closed-end contractual investment fund that was registered in Estonia on 23 May 2016 and is supervised by the Estonian Financial Supervisory Authority. Baltic Horizon properties include Upmalas Biroji and SKY Supermarket in Latvia; the G4S building, Coca-Cola Plaza and the Lincoln building complex in Estonia; Europa and the Domus Pro retail park in Lithuania.
For additional information contact
Edgars Žilde, Communications Project Manager at Nordea Bank; phone: 6 700 5434, GSM: 28 452 975, e-mail: edgars.zilde@nordea.com