Sorainen has advised the Baltic Horizon Fund, managed by Northern Horizon Capital, on its acquisition of the Vainodes 1 office building in Riga, for a price of approximately EUR 21.3 million, from sellers NULE 4 and NM 2.
Sorainen reports that the deal was confirmed on November 14, 2017, when a share purchase agreement was signed with the sellers for the acquisition of Vainodes 1 and a neighboring land plot at Telts 1, in Riga. According to Sorainen, as the transaction was structured as a share deal, "the buyer is to acquire shares in the SPV companies that own the property." Closing remains subject, the firm reports, "to the customary conditions precedent and is expected to take place in December."
The Vainodes 1 office building is fully occupied and located about ten-minutes from Riga city center. The total leasable area of the building is 8,052 square meters. The anchor tenant, with about 90% of the GLA, is JSC Latvian State Forests; other tenants include the pharmaceutical company Abbvie and a cafeteria. The current detailed plan for the land plots includes an opportunity to construct up to 18,262 square meters of additional office space and a multi-story car park.
“We are glad to include such an attractive property in our cash flow portfolio and are satisfied about being able to deploy most of the capital raised in the Q2 offering," claimed Baltic Horizon Fund Manager Tarmo Karotam. "The process towards execution of the agreement took longer than usual. This is because additional legal and tax due diligence was needed due to changes in tax regulations in Latvia as of January 2018."
The Sorainen Latvia team was led by Country Managing Partner Eva Berlaus, working with Senior Associate Janis Bite.
Image Source: baltichorizon.com