Deal 5: IFP Erste Immobilienfonds Managing Limited Partner Christoph Schmidt on Adventum’s Acquisition of Mercedes-Benz Building

Deal 5: IFP Erste Immobilienfonds Managing Limited Partner Christoph Schmidt on Adventum’s Acquisition of Mercedes-Benz Building

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On November 9, 2021, CEE Legal Matters reported that Legalio had advised IFP Erste Immobilienfonds fur Polen on the sale of Mercedes-Benz Buildingisition to Adventum. CEE In-House Matters spoke with Christoph Schmidt, Managing Limited Partner at IFP Erste Immobilienfonds fur Polen, to learn more about the sale.

CEEIHM: To start, please tell our readers a few words about IFP ErsteImmobilienfondsfuerPolen GmbH & Co. KG

Schmidt: Our company was founded in 2004 by BankhausWoelbern in Hamburg. Woelbern established more than 80 investment funds spread over Europe. About 1,600 shareholders had put their money in. In 2012/2013 our company was suffering from some internal difficulties which led to my nomination to a role of limited managing partner, having been myself one of the 1,600 small investors. My principal occupation is Information Technology, not Real Estate. The Mercedes headquarters in Warsaw was our one and only asset from the very beginning.

CEEIHM: What can you tell us about the asset itself?

Schmidt: Located in Warsaw, the building is a modern office development that has served as the headquarters of companies from the Mercedes-Benz Group for many years.

CEEIHM: And why did you sell the asset now?

Schmidt: Our shareholders were told in 2004 that they would get their money back after ten years. The majority of them have already retired. We established a structured procedure to sell the property in autumn 2019. While the initial feedback from the market was promising, in spring 2020 all offers were withdrawn due to the pandemic crisis. So, some patience was necessary. Adventumskillfully used the window of opportunity, while other investors were still hesitating. It is not an exaggeration to say, that Adventum achieved quite a favorable deal.

CEEIHM: What would you say was the most complex aspect of the deal from a legal perspective?

Schmidt: I don’t want to dive into details. There were several dozen problems to be solved in a limited timeframe. You have to protect your interest always but should quarrel only so much that you can still look into each other’s eyes. Our small team worked well and with high efficiency together. The transaction costs were modest.

CEEIHM: Why did you choose Legalio, in particular, to assist on this deal?

Schmidt: Malgorzata Lewandowska did a proper job in terms of the extension of the lease contract with Mercedesback in 2019. As such, it was natural to turn to her current firm – Legalio, which was established in 2021.

Originally reported by CEE In-House Matters.