Porta Finance advises Northern Horizon Capital on sale of BPT Real Estate to BaltCap

26 August, 2015

Northern Horizon Capital A/S has signed a transaction for sale of its property Northern Horizon Capitalmanagement subsidiary BPT Real Estate AS to a private equity fund managed by BaltCap. The transaction is subject to approval by competition authorities and is expected to close in September 2015. The parties have agreed not to disclose the financial terms of the transaction.

BPT Real Estate is the leading property management company in the region. The team of over 80 professionals manages more than 150 properties, whose total area amounts to 1 million square meters, and has more than 1,000 tenants. The majority of the properties managed by BPT Real Estate are located in the Baltics. In addition, BPT manages several properties in Poland.BaltCap

”The sale of BPT Real Estate is the logical conclusion of the last couple of years’ gradual process of establishing and empowering BPT Real Estate as a property management company that is independent of Northern Horizon’s core investment management business. The divestment allows Northern Horizon to fully focus on growing its core investment management business. In that segment we see many interesting opportunities to offer to our investor clients new investment products not just in the Nordics and Germany, but also in the Baltics where BPT Real Estate’s activities are focused. Furthermore, Northern Horizon will post-transaction continue to maintain and expand its own significant on-the-ground presence in the Baltics through our in-house investment management, fund administration and corporate services teams there”, comments Michael Schönach, Northern Horizon Capital Group CEO.

“The real estate market in the Baltic States is becoming similar to those of the developed countries, where ever increasing role is played by the institutional investors. For this reason independent property management and real estate advisory services are in greater demand than ever before. BPT Real Estate is one of the best known brands in the region and, therefore, we chose to invest into a qualified team of professionals which provide top quality services. We expect that the investment and experience of the fund will help BPT Real Estate strengthen its reputation as reliable and independent partner for those who invest into real estate in Baltic States and Poland”, Šarūnas Alekna, BaltCap investment director, noted.

“BPT Real Estate has been growing year on year basis in the market and has become the leading service provider in value adding real estate services. After full separation from Northern Horizon Capital group we will continue offering property management services to all Northern Horizon Capital funds in Baltics and Poland and also servicing many other professional investors. Our ambition is to continue being the leading brand to guarantee the highest quality standards and to introduce new value adding services. With BaltCap as an investor we are confident that such goals will be reached even sooner and after separating from Northern Horizon Capital we can continue our growth fully independent“, comments Indrek Hääl, BPT Real Estate Group CEO

Northern Horizon Capital’s financial advisor for the transaction was Porta Finance.

Northern Horizon Capital is a real asset investment management firm with activities in the Nordic countries, Germany, the Baltics and Poland, and St. Petersburg, Russia. Northern Horizon focuses on offering its institutional investor base selected commercial real estate strategies, including specialised strategies in emerging real asset subsectors such as carehomes and farmland. Assets under management total over €1 billion.

BaltCap is the leading independent private equity firm in the Baltic States, operating in the region since 1995. BaltCap controls more than 30 Baltic States-based companies with total annual revenue of more than €300 million. During the last 5 years, overall investment into these companies exceeded €150 million.

Further information:
Michael Schönach
CEO, Northern Horizon Capital

Indrek Hääl
CEO, BPT Real Estate

Karl-Erik Kodu
Director, Porta Finance
Tel: +372 602 5015