Sorainen advised CPA®:17 – Global on the acquisition of a majority position in a joint venture with real estate investment vehicle “Baltic Retail Properties”. The portfolio includes eighteen retail stores and one logistics facility in locations throughout Lithuania, Estonia and Latvia. The assets are leased on a long-term basis to Kesko Senukai, a leading Do-It-Yourself retailer in the Baltic States.
The investment totalled approx EUR 127 million including associated fees and expenses and is CPA®:17 – Global’s second transaction in the Baltic States following its acquisition in December 2016 of a modern Class-A central logistics facility in Lithuania, also leased to Kesko Senukai.
CPA®:17 – Global is managed by affiliates of W. P. Carey Inc., a leading internally-managed net-lease real estate investment trust based in the USA that provides real estate-based financing solutions primarily for companies in the USA and Europe.
Arvi Luoma, Managing Director of W. P. Carey Inc., commented: “We are delighted to continue investing in the Baltic States, while expanding our relationship with a strong tenant like Kesko Senukai in a sector recognised as one of the most promising in the region. W. P. Carey’s access to capital and ability to structure and underwrite a complex multi-jurisdictional transaction allowed us to provide liquidity to the owners of the real estate investment vehicle, while adding attractive income-generating assets that meet our investment criteria for the CPA®:17 – Global portfolio.”
Sorainen advised CPA®:17 – Global on Lithuanian law issues throughout the transaction as well as legal due diligence and negotiations. The Sorainen team was led by partner Kæstutis Adamonis and included senior associate Asta Augutytė-Rapkevièienė, associates Karolis Kunigëlis and Ugnė Trakymienë.
Sorainen also advised the investor on debt financing-related matters. Sorainen represented the client in agreeing the structure of the financing and security portfolio and preparing related documentation. Sorainen additionally represented the client in negotiations with a local bank on facility agreements and a transaction security document package governed by Lithuanian, Latvian and Estonian law, as well as hedging documentation. The Sorainen team involved in financing matters comprised counsel Augustas Klezys and Paul Künnap, senior associate Viktorija Smirnova-Èerkasa, associates Lina Ragainytë, Urtė Armonaitė, Edvīns Draba and Erik Salur.