Northern Horizon Capital AS, the management company of Baltic Horizon Fund, will be implementing a number of relief initiatives focused on alleviating the financial hardship of the most vulnerable group of SME tenants, primarily in the retail sector.
The retail sector was chosen because it is those whose operations were most severely affected by the outbreak and the restrictive measures implemented by the Baltic governments to limit the spread of contagion.
“While the spread of COVID-19 virus is causing an unprecedented damage to businesses and communities across the globe, our home markets in the Baltics are facing equally challenging financial prospects. Baltic Horizon Fund is managing capital entrusted to us by Baltic retail and institutional investors so we consider it our responsibility to also make an effort to help companies get through this crisis,” said Tarmo Karotam, Fund Manager of Baltic Horizon Fund.
The following relief measures will be came into effect on 1 April 2020:
• Rent payment deferral for the period of 90 days (3 months) which could be extended depending on the development of the pandemic and governmental restrictions. In case government has waived collection of certain service charges, those will also be taken into consideration.
• In due course, tenants have a possibility to discuss and agree an individual payment schedule for the recovery of deferred rental payments after the deferral term.
• Waiver of all penalties and interest arising from the rent deferral.
The eligibility for the relief and preconditions will be determined individually for each tenant by fund management taking into account the changing nature of the restrictive measures and the financial stimulus being initiated by the Baltic governments.
