How to pull together a deal with six sellers

Metropol Hotel

Property type:

A 4-star hotel with XX rooms

Location:

Riga Old Town

The property consists of:

Two adjacent buildings and two plots of land

Specifics of the deal

This historical hotel building in the very heart of Riga remained unsold for a long time because of strained relations between the owners, and due to other complications. One building was owned by a Latvian company, which belonged to a Swedish holding company. The second one was owned by five private individuals, residents of Germany and Israel.

There were multiple ongoing lawsuits between the owners, as well as various encumbrances, including some from third parties.

The task given to Silver Fox

To structure and sign a deal, selling both properties simultaneously, and clearing the properties from the encumbrances and related lawsuits in the process.

Preliminary negotiations with the sellers lasted for two months. Another four months were spent negotiating the exact terms and conditions of the transaction. After the documents were signed, five months were needed for the parties to fulfil their assumed obligations: withdrawing mutual claims, obtaining the required rulings and court orders, and settling all disputes.

The process of the deal

After going through detailed legal due diligence and a physical check of the buildings, drawing up inventories and conducting interviews with personnel, a detailed action plan for property acquisition and structure of the deal was developed.

The main difficulty while the purchase agreement was drawn up was conducting negotiations and coordinating communication between the property owners, whose relationships with each other were extremely tense.

The experience, patience and efficiency of Silver Fox experts were instrumental in accomplishing this task.

The outcome:

The deal was successfully closed. Full reconstruction of the buildings was finished a year later, and the hotel was awarded a four-star rating.