The Baltic Horizon Fund signed an agreement with UAB “PREF III” to sell the Domus Pro office building and retail park in Vilnius, Lithuania, for €23.5 mln.
The Fund has been invested in the property for close to nine years, earning an internal rate of return of 15.8% and an equity multiple of 2.1.
The proceeds of the transaction will mainly be used to decrease the loan obligations of the Fund and partially for the redemption of bonds maturing in May 2023.
Closing of the transaction is expected to take place by the end of February 2023.
Baltic Horizontal Fund manager Tarmo Karotam said: ‘The Fund got involved with financing this development project in the early stages in 2013 with additional expansions taking place in 2015 of more retail and in 2017 adding the office block. It was a successful development project in the suburbs of Vilnius which later turned into a great cash-flow generating investment. Over the years the property has been constantly occupied with an attractive tenant mix which resulted in doubling the investors’ money that was initially invested.’
Built in 2014, the Domus Pro Retail Park extends over 11,226 m2 and features BREEAM In-Use 2021.
Offering everything from food and services to a fitness center and a post office, it is located located next to the freeway in the rapidly developing northwestern part of Vilnius.
For its part, the Domus Pro Business Centre is a modern office building spreading over six floors with flexible floor plans and parking for 47 vehicles.
Built in 2017, the 4,831 m property features BREEAM New Construction 2018 sustainability certification and is 97.3% leased.
The Baltic Horizon Fund is owned by Nordic fund manager Northern Horizon Capital.