German fund acquires commercial real estates in Tallinn Harbour area

Triniti

Our transaction team succesfully advised a closed-end German investment fund in its acquisition of two commercial real estates in the Tallinn Old-Town harbour area – Merekeskus and Lootsi Kaubakeskus, through its Estonian subsidiary Estnische HafenCity AS from a local real estate developer Bestok Kinnisvara OÜ (article).

The transaction was unique from two perspectives – firstly, this is one of the first German closed-end fund investments into Estonia and secondly, the completion of the transaction marks one of few succesful debt restructuring cases where the initiation of bankruptcy proceedings and appointment of a temporary bankruptcy trustee did not result in the declaration of bankruptcty, but under the supervison of the court appointed trustee the transaction was concluded on market terms.

The advisory team of Tamme Otsmann Ruus Vabamets, led by the head of the transactions department partner Tõnis Tamme, advised the purchaser in connection with carrying out the legal due diligence, in negotiations with the seller and seller’s largest creditor Swedbank AS and in negotiations and conclusion of the financing agreements and securitization agreements with the financing banks: Nordea Bank Finland Estonian branch and LHV Pank.