Historic building suitable for further reconstruction, and the sale of exclusive apartments
Location:
The embassy district
of Rīga
The property consists of:
A street-facing building (an
architectural monument) and
two buildings in the courtyard
Specifics of the deal
The property was encumbered by rent agreements recorded in the Land Register. Additionally, certain adjustments had to be made because of the identity of the seller: one of the biggest Christian communities in Latvia. The seller’s property
manager followed strict and lengthy procedures in relation to any amendments to the
transaction – even minor ones. Attempts to find a buyer for the property took two years. The seller rejected the proposals of several potential buyers.
The task given to Silver Fox
The owner of the property wanted to sell it without any additional complications or hassle. However, the buyer set a condition of terminating all the rent agreements and cancelling the relevant entries in the Land Register.
The process of the deal
The fact that the sale price was fixed and the buyer was unable to bargain contributed to the tenseness of the negotiating environment. The seller also didn’t want to assume any responsibility for the dissolution of the long-term rental agreements. The buyer was a young and energetic foreign developer, who tried to speed up the deal by proposing new solutions.
Silver Fox managed to successfully complete the negotiations, and to secure the signing of the purchase agreement and the termination of rent agreements as a package.
Silver Fox’s experience in managing the process of closing a deal and settling differences enabled this deal to be signed within record time: the negotiations lasted for a month and a half, while the preparation and signing of contracts took two weeks.
The outcome
In 2015, the fully reconstructed building was completed with 12 luxury apartments for sale.
