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Baltic Horizon Fund plans next public offering of new units

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NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR
INDIRECTLY, IN OR INTO THE UNITED STATES, AUSTRALIA, CANADA, HONG KONG, JAPAN,
NEW ZEALAND, SINGAPORE, SOUTH AFRICA OR SUCH OTHER COUNTRIES OR OTHERWISE IN
SUCH CIRCUMSTANCES IN WHICH THE PUBLICATION OR DISTRIBUTION WOULD BE UNLAWFUL. 

Northern Horizon Capital AS (the Management Company) announces the plan for the
next public offering of new units of Baltic Horizon Fund (the Fund) in November
2017. 

The offering is intended to be aimed at all retail investors in Estonia,
Sweden, Finland and Denmark and institutional investors in selected European
countries. The target is to raise EUR 20 million to the Fund for its existing
acquisition pipeline with an option to increase the offering to EUR 40 million.
The Management Company has submitted an application to register a new public
offering and listing prospectus with the Estonian Financial Supervision
Authority. 

"The main purpose of this public offering is to close transactions of
strategical importance for the Fund and to unlock value add possibilities
within the portfolio. Target properties, mainly located in central areas of
Baltic capitals are, in addition to sustainable cash flows, expected to hold
either expansion potential or upside in long term rental levels. Furthermore,
with the offering it is aimed to increase the institutional investor base of
the Fund, grow the net assets above EUR 100 million and thus diversify its
holdings to achieve an increased level of dividends and overall returns for the
periods ahead" commented fund manager Tarmo Karotam. 

As of 30 June 2017 the gross asset value (GAV) of the Fund was approximately
EUR 171 million, average gross property yield approximately 7.2%, LTV 47.6% and
cost of debt 1.8%. The Fund’s most recent net asset value (NAV) is
approximately EUR 86.2 million with total of 64 655 870 units outstanding.
Since its first listing in Tallinn in July 2016 the Fund has made 4 quarterly
cash distributions to its investors totaling 9.1 eurocents per unit. The
largest tenants in the portfolio are G4S, Forum Cinemas (Finnkino), Swedbank,
SEB Global Services, Cabot, Lindorff and Rimi (ICA group). All properties are
located in the capital cities Tallinn, Riga and Vilnius. 

AS LHV Pank and Prudentus Capital Oy have been appointed as financial advisors
for the offering. Catella Corporate Finance Stockholm AB is expected to be
engaged as financial advisor and Catella Bank S.A, including its Swedish branch
is expected to be engaged as Sales Partner. KPMG Baltics is acting as auditor
of Baltic Horizon Fund and legal counselling is provided by Sorainen. 

Additional information:

Tarmo Karotam
Baltic Horizon Fund manager
E-mail [email protected]
www.baltichorizon.com

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

Distribution: Nasdaq, GlobeNewswire, www.baltichorizon.com

This announcement contains information that the Management Company is obliged
to disclose pursuant to the EU Market Abuse Regulation. The information was
submitted for publication, through the agency of the above distributors, at
8:00 EET on 27th of October 2017. 

The information contained herein is not for release, publication or
distribution, in whole or in part, directly or indirectly, in or into the
United States, Australia, Canada, Hong Kong, Japan, New Zealand, Singapore,
South Africa or such other countries or otherwise in such circumstances in
which the release, publication or distribution would be unlawful. The
information contained herein does not constitute an offer to sell or the
solicitation of an offer to buy, nor shall there be any sale of, the securities
in any jurisdiction in which such offer, solicitation or sale would be unlawful
prior to registration, exemption from registration or qualification under the
securities laws of any such jurisdiction. 

This communication does not constitute an offer of securities for sale in the
United States. The securities have not been and will not be registered under
the U.S. Securities Act of 1933, as amended (the "Securities Act") or under the
applicable securities laws of any state of the United States and may not be
offered or sold, directly or indirectly, within the United States or to, or for
the account or benefit of, U.S. persons except pursuant to an applicable
exemption from, or in a transaction not subject to, the registration
requirements of the Securities Act. 

This communication does not constitute an offer of securities to the public in
the United Kingdom. No prospectus has been or will be approved in the United
Kingdom in respect of the securities. Consequently, this communication is
directed only at (i) persons who are outside the United Kingdom, (ii) persons
who have professional experience in matters relating to investments falling
within Article 19(5) of the Financial Services and Markets Act 2000 (Financial
Promotion) Order 2005 (the "Order"), (iii) high net worth entities falling
within Article 49(2) of the Order and (iv) other persons to whom it may
lawfully be communicated (all such persons together being referred to as
"relevant persons"). In addition, this communication is, in any event only
directed at persons who are "qualified investors" pursuant to the Prospectus
Directive (2003/71/EC, as amended). Any investment activity to which this
communication relates will only be available to, and will only be engaged with,
relevant persons. Any person who is not a relevant person should not act or
rely on this document or any of its contents.