The project
VPH, a developer and manager of world-class commercial real estate across the Baltics and Belarus, has acquired a plot of 14.45 hectares in Stopiņu novads (Latvia) from Verus Praedium (owner of the IKEA store in Latvia), for development of a new lifestyle shopping centre Sāga.
Sāga is located next to the IKEA store and is a unique concept, combining shopping with recreation, sports and office facilities. The planned investment for developing Sāga is approximately 68 million EUR.
The contractor for the project, UPB, is one of the market leaders in construction. The project is the largest in UPB’s portfolio in Latvia, having a total area of 56,000 m2.
Read more about Sāga here.
Our assistance
The Sorainen Real estate and construction (REC) sector group assisted VPH throughout the process by advising the client:
- in the land acquisition process, including, we represented the client in negotiations with the seller as well as drafted transaction documents and advised the client on territorial planning matters (development of the detail plan),
- in relation to concluding leases for the shopping centre, including, represented the client in negotiations with the anchor tenants and drafted the lease agreements,
- on tax matters related to the project,
- in relation to concluding the construction agreement (“Yellow” FIDIC), including, represented the client in negotiations with UPB and drafted the construction agreement (particular conditions for FIDIC),
- in the process of obtaining secured loan from credit institutions, as well as providing Latvian law advice in relation to issuance of secured bonds (latter are governed by Polish law) for financing the project. Assistance included full legal support for the borrower, including transaction documentation (loan, bonds, collaterals) negotiations with the financiers and bonds purchaser from the borrowers perspective till respective transaction signing and closing,
- in the process of structuring the shareholder’s relationship, including, drafting the shareholder agreement.
Our team
Experts from REC Sector group covering various legal practices in this project:
- associates Andris Vilisons (who advised the client on land acquisition, territorial planning and lease agreements) and Zane Akermane (lease agreements)
- senior associates Jorens Jaunozols (construction), Inese Heinacka (financing), Renāte Purvinska (shareholders) and Kristīne Erele (tax)
- partners Lelde Laviņa (real estate and construction), Rūdolfs Eņģelis (financing) and Jānis Taukačs (tax)
