Copenhagen-based BPT Asset Management has launched a new fund, BPT Baltic Opportunity, to invest in core real estate assets in the three Baltic countries. The new fund is the fourth BPT fund in the region. In a statement, BPT said that it is looking to 'change the scene' following a couple of years of practically no transactions in the Baltic real estate markets.

The new fund has a maximum equity base of EUR 100 million equivalent to an investment capacity of EUR 200 mln.

Focusing on core properties with international tenants and benefiting from a recovering market, attractive yield and rent levels, BPT Baltic Opportunity is targeting strong cash-flow investments in good locations with a projected IRR at fund level of above 15%.

'The Baltic economies were amongst the quickest in Europe to politically embrace the economic challenges of the financial crisis, making the necessary changes and budget cuts. The reward now shows in their macroeconomic progress fuelled by rising exports and gradually decreasing unemployment numbers,' said fund manager Tarmo Karotam.

Karotam added: 'The recent economic correction has naturally echoed in the real estate markets where prices have dropped as much as 40%. These days the market has stabilized at very attractive yield levels presenting some of the best investment opportunities in a decade.'

BPT Asset Management is active in northern, central and Eastern Europe.