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Deal 5: Immofinanz's Stefan Frommel On Acquisition of Retail Parks from Mitiska REIM

Deal 5: Immofinanz's Stefan Frommel On Acquisition of Retail Parks from Mitiska REIM

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On December 30, 2020, CEE Legal Matters reported that BPV Braun Partners had advised Immofinanz on the acquisition of retail parks in the Czech town of Litvinov and the Horni Mecholupy neighborhood of Prague from Mitiska Reim. CEEIHM spoke with Stefan Frommel, Head of Transactions at Immofinanz, to learn more about the matter.

CEEIHM: To start, please tell us a few words about Immofinanz.

Stefan: Immofinanz is a commercial real estate group with activities focused on the retail and office segments of seven core markets in Europe: Austria, Germany, Poland, Czech Republic, Slovakia, Hungary, and Romania – we are also active in Serbia, Croatia, and Slovenia. The core business covers the management and development of properties, with the Stop Shop (retail), VIVO! (retail) and myhive (office) brands representing strong focal points that stand for quality and service. The real estate portfolio has a value of approximately EUR 5 billion and covers more than 210 properties.

CEEIHM: What about the targets of the acquisition – what made the retail parks particularly attractive for you?

Stefan: Both assets perfectly fit into our retail park portfolio — called Stop Shop — because of the size of the assets, the tenant mix, and the micro-location.

CEEIHM: How was the deal financed — and did BPV Braun Partners advise on the financing for the deal as well?

Stefan: The deal was mostly financed by our own equity, however, we also took advantage of existing financing. BPV Braun did also advise us in this regard.

CEEIHM: What would you say was the most challenging/complex aspect of the deal?

Stefan: As the deal in the Czech Republic was linked to another portfolio from the same vendor in Serbia, we had to consider more parameters for this deal in order to align both acquisitions in terms of timing and commercial aspects. Since legal advisory in Serbia was not covered by BPV, it had to cooperate with a Serbian firm in this deal. Other challenging aspects were related to the structure of the deal (it was a share deal) as well as several topics that came up during the due diligence process.

CEEIHM: What were the considerations based on which you opted to turn to BPV Braun Partners for legal advice on this deal?

Stefan: We have a very close relationship with BPV for several years and have worked many times together in M&A transactions. We appreciate that BPV has a hands-on mentality as well as deep legal knowledge, and a good commercial understanding, which is important to us.

Originally reported by CEE In-House Matters.

Czech Republic Knowledge Partner

HAVEL & PARTNERS, attorneys-at-law, with offices in Prague, Brno, Bratislava, Pilsen, Olomouc, and Ostrava, has a team of 220 lawyers, tax advisors and 500 employees in total, is the largest independent law firm in Central Europe.

Our clients include large international companies, leading Czech and Slovak firms, including strategic state-owned companies and public sector authorities, as well as medium-size businesses, individual entrepreneurs, and investors. We advise approximately 100 of the Fortune 500 companies, and almost 50 of the Czech Top 100 companies. HAVEL & PARTNERS currently provides its services to a total of 2,000 clients. We have the most comprehensive international support available to both Czech and Slovak law firms. We provide legal and tax advice in 12 world languages in more than 90 countries around the globe. Up to 70 % of the transactions we deal with involve an international aspect.

HAVEL & PARTNERS was named the best law firm operating in the Czech Republic by the prestigious British rating agencies Chambers and Partners (2020) and Who’s Who Legal (2018, 2019). It is also the most successful law firm, providing the most comprehensive legal services in the Czech Republic and Slovakia, based on the total number of all nominations and awards in all years of the Law Firm of the Year awards. The firm became the absolute winner of this competition four times in the last six years, receiving the main award Domestic Law Firm of the Year in the Czech Republic (2015, 2017, 2018, 2020) and ranking as one of the most recommended law firms in all categories of law. Our company is also a three-time winner of the Law Firm of the Year award for Best Client Services (2015, 2016, 2019). In the field of M&A, HAVEL & PARTNERS is the best law firm in the Czech Republic based on the annual International Advisory Experts awards (2018, 2019). In Slovakia, it also won the prestigious global M&A Today Awards (2013–2018) for Mergers & Acquisitions six times in a row, and repeatedly won first place in the ranking by Lawyer International Legal 100 (2017, 2018). Prestigious international rating agencies EMIS DealWatch and Mergermarket have ranked HAVEL & PARTNERS among the leading law firms by the number of transactions completed in the entire CEE region since 2009. Based on annual awards of the Acquisition International magazine, HAVEL & PARTNERS has become the Law Firm of the Year 2019 in the M&A category in the CEE region.

Firm's website: https://www.havelpartners.cz/en/

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