Mon, Feb
54 New Articles

Sorainen and Ellex Advise on CPA:17-Global Investment in Baltic Real Estate Portfolio

Sorainen and Ellex Advise on CPA:17-Global Investment in Baltic Real Estate Portfolio

Deals and Cases

Sorainen advised CPA:17-Global on the acquisition of a 70% position in a joint venture with Baltic Retail Properties. The portfolio includes eighteen retail stores and one logistics facility in locations throughout Lithuania, Estonia, and Latvia. The assets are leased on a long-term basis to Kesko Senukai, a prominent do-it-yourself retailer in the Baltic States.

The investment totaled approximately EUR 127 million including associated fees and expenses and is CPA:17-Global’s second transaction in the Baltic States following its acquisition in December 2016 of a modern Class-A central logistics facility in Lithuania, also leased to Kesko Senukai (as reported by CEE Legal Matters on December 19, 2016).

CPA:17-Global is managed by affiliates of W. P. Carey Inc., an internally-managed net-lease real estate investment trust based in the USA that provides real estate-based financing solutions primarily for companies in the USA and Europe.

Arvi Luoma, Managing Director of W. P. Carey Inc., commented: “We are delighted to continue investing in the Baltic States, while expanding our relationship with a strong tenant like Kesko Senukai in a sector recognised as one of the most promising in the region. W. P. Carey’s access to capital and ability to structure and underwrite a complex multi-jurisdictional transaction allowed us to provide liquidity to the owners of the real estate investment vehicle, while adding attractive income-generating assets that meet our investment criteria for the CPA:17-Global portfolio.”

Sorainen advised CPA:17-Global on Lithuanian law issues throughout the transaction as well as legal due diligence and negotiations. The Sorainen team was led by Partner Kestutis Adamonis and included Senior Associate Asta Augutyte-Rapkeviciene and Associates Karolis Kunigelis, and Ugne Trakymiene.

Sorainen also advised CPA:17-Global on debt financing-related matters, including on the structure of the financing and security portfolio and related documentation. Sorainen additionally represented CPA:17-Global in negotiations with a local bank on facility agreements and a transaction security document package governed by Lithuanian, Latvian, and Estonian law, as well as hedging documentation. The Sorainen team involved in financing matters included Counsel Augustas Klezys and Associates Lina Ragainyte, Urte Armonaite, Edvins Draba, and Erik Salur.

Editor's Note: After this article was published, Ellex announced that its team in Lithuania consisted of Associate Partner Indre Jonaityte-Grice, Partner Tomas Milasauskas, Senior Associate Donata Montvydaite, Senior Associate Ruta Besusparyte, and Senior Associate Laurynas Narvydas. Its Estonian team consisted of Senior Associate Alla Kuznetsova and Partner Martin Kaerdi. Latvia Senior Associate Maris Brizgo provided advice in that country.

Latvian Knowledge Partner

COBALT is closely integrated alliance of top-tier law offices in Estonia, Latvia, Lithuania and Belarus, making us one of the largest law firms in the Baltic market. 

COBALT is a trusted partner for daily matters and complex large-scale transactions and disputes. The firm’s broad spectrum of expertise and established position as the market leader give a comprehensive basis for providing advice on special areas of business law.

We advise top international and regional businesses, financial institutions, state and local governments, and the region’s most promising start-ups. We offer leading-edge solutions in key industry sectors: Consumer Products, Trade & Distribution, Real Estate & Construction, Pharmaceuticals & Healthcare, Energy & Utilities, Communications, Media & Technologies, Financial Services, Transport & Logistics.

COBALT has been named Baltic Law Firm of the Year 6 times. We were recognized as the Most Innovative Law Firm of the Year 2019 in the Baltics at the IFLR European Awards in London. COBALT also won CEE Legal Matters Deal of the Year Award for Estonia, Latvia, and Lithuania, as well as the overall Baltic Deal of the Year, at the 2019 CEE Legal Matters Awards. We have received multiple awards from the Chambers Europe, IFLR, The Lawyer and Mergermarket and we are regularly listed amongst the top performing M&A legal advisors in the Bloomberg, Thomson Reuters and Mergermarket deal tables

More information on Cobalt can be found at www.cobalt.legal

All News about Cobalt can be found here.


Our Latest Issue