Baltic Horizon Fund (further "BH") is a regulated closed-end contractual investment fund registered in Estonia. Northern Horizon Capital AS is the management company (AIFM) of the Fund. BH operates under the REIT concept where vast majority of Fund's cash earnings are paid and only 20% can be reinvested. The Fund is a public fund with no particular lifetime (evergreen). Units of the Fund are made available to the public in accordance with the Fund rules and applicable laws. BH units are listed on the Fund List of the Nasdaq Tallinn Stock Exchange. Following a successful capital raising BH merged with Baltic Opportunity Fund (BOF) on 30 June 2016. BH is the remaining entity which took over 5 assets of BOF and its investor base. Post-merger BH’s equity base exceeds EUR 50 mln. In total approx. 57 mln fund units are tradable on the exchange.
Fund’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 investing into established cash-flow generating properties with potential to add value through active management within retail, office and logistic segments. Focus is on strategic locations, strong tenants and tenant mix and long-term leases. Fund aims to use a 50% long term leverage strategy. Fund aims to continuously diversify the risks geographically, across real estate segments, across tenants and debt providers.
Management fee is linked to the market capitalization of the tradable units: 1,50% from market cap for market cap up to mEUR 50; 1,25% from market cap for market cap between mEUR 50 and 100; 1,00% from market cap for market cap between mEUR 100 and 200; 0,75% from market cap for market cap between mEUR 200-300; 0,5% from market cap for market cap over mEUR 300.
The success fee is based on AFFO (adjusted funds from operations). The hurdle rate is 8% of AFFO from paid-in capital. The manager is entitled to 20% of the part exceeding the hurdle rate. The success fee is capped and floored at 0,4% from NAV per annum. The success fee becomes payable not earlier than in 2020.
Nasdaq Baltic is a common name for the companies and exchanges/regulated markets operated by Nasdaq companies in the Baltic States, including Nasdaq Tallinn AS, Nasdaq Riga, AS and AB Nasdaq Vilnius among them and information provided by them hereto.