A deal between an energetic investor and a conservative organisation

Elisabetes 4

Property type:

Historical building for further reconstruction and the sale of exclusive apartments

Location:

The embassy district of Riga

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 status of the seller — one of the biggest Christian communities in Latvia. The seller’s property manager followed strict and lengthy procedures with 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’s condition was terminating all the rent agreements and cancelling the respective 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 Russian 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: negotiations lasted for a month and a half, while the preparation and signing of contracts took two weeks.

The outcome:

In 2015, a fully reconstructed building was commissioned with twelve exclusive apartments for sale.