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.

Shopping Centre Saga

Sāga will be located next to the IKEA store and will be 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 advisin the client:

  • in the land acquisition process, including representing the client in negotiations with the seller, drafting transaction documents and advising the client on territorial planning matters (developing the detailed plan)
  • in relation to concluding the leases for the shopping centre, including representing the client in negotiations with the anchor tenants and drafting the lease agreements
  • on tax matters related to the project
  • in relation to concluding the construction agreement (Yellow FIDIC), including representing the client in negotiations with UPB and drafting the construction agreement (particular conditions for the FIDIC)
  • while obtaining a secured loan from credit institutions, as well as providing Latvian legal advice in relation to the issuance of secured bonds (which were governed by Polish law) for financing the project. Assistance included full legal support for the borrower, including drafting the transaction documentation (relating to the loan, bonds and collaterals) and in negotiations with the financiers and bond purchaser from the borrower’s perspective until the agreements were signed and closed
  • in structuring the shareholder relationship, including drafting the shareholder agreement


Our team

Experts from REC Sector group covering various legal practices in this project: