COBALT advised Baltic Horizon on transaction to sell Duetto office buildings

2023 - 05 - 17

Baltic Horizon Fund has signed an agreement with ECRE IV (Lux) S.à r.l. to sell 100% shares of BH Duetto UAB which owns Duetto I and II office buildings in Vilnius, Lithuania.

The sales price of the assets is approximately EUR 37 million, which is close to the latest valuation. The exact sales price will be calculated on the closing date, however the price may be subject to post-closing adjustments. The fund first acquired the properties in 2017 and 2019 from the international developer and over the period earned an IRR of approximately 13.7% and equity multiple of 1.8x. The proceeds of the transaction will be used mainly to partially redeem the new bond and invest into the centrally located assets of the Fund. Closing of the transaction is expected to take place at the latest by 12 June 2023.

“We continue to implement the investment strategy of Baltic Horizon Fund. Taking into account economic cycles, financial markets and the opportunities provided by the development of capital cities, we shall reduce the financial obligations of the Fund and redirect investment flows towards the upgrade of the unique properties in the Fund’s portfolio. The changes implemented in our central properties in recent years, including the Europa center in Vilnius and the Galerija Centrs in Riga, along with the approved future strategies, ensure the achievement of long-term goals for the assets and for the Fund,” commented Fund manager Tarmo Karotam.

Baltic Horizon was represented by the COBALT team: Partner Simona Oliškevičiūtė-Cicėnienė, Senior Associate Elena Venckienė, Managing Associate Rasa Mikutiene and Of Councel Andrius Kazlauskas.

Baltic Horizon Fund is a registered contractual public closed-end real estate fund managed by Alternative Investment Fund Manager license holder Northern Horizon Capital AS.