Portfolio

Description of the deal

Attempts to find a buyer for the property took two years. The seller rejected proposals of several potential buyers. The major complicating factor was the status of the seller — one of the biggest Christian communities in Latvia.

The seller’s property manager followed strict and lengthy procedures to address any, even minor, amendments in the transaction. On the other side, the buyer was a young and energetic Russian developer, who tried to speed up the deal by proposing new solutions.
The fact that the sale price was fixed and the buyer was unable to bargain, added to a tense negotiating
environment. Finally, the buyer was uninterested in assuming any obligations related to termination of long-term rent agreements.

Author:DENIS KIM

With Silver Fox, solutions will be proposed in situations where other brokers can see only a dead end. DENIS KIM

Details of the deal:
property: historical street-facing building (architectural monument) and two backyard buildings;
total area — 2 350 m2,
rent agreements recorded in the Land Register.
Task set by the buyer:
to buy the property for reconstruction for exclusive apartments,
to terminate rent agreements and cancel the respective entries in the Land Register.
Task set by the seller:
to sell without any additional complications.

The outcome

Silver Fox managed to successfully complete the negotiations and to secure signing of the purchase agreement and the termination of rent agreements as a package. The deal was completed within a record timeframe: negotiations lasted for 1.5 months, while preparation and signature of contracts took two weeks.


Description of the deal

The properties remained unclaimed for a longer time because of strained relations between the owners and other complications. Many potential buyers gave up after preliminary discussions with the owners’ representatives. It was not easy to convince the investor that a secure deal and its successful implementation were possible. Preliminary negotiations with the sellers lasted for two months. Another four months were spent on negotiating the exact terms and conditions of the transaction. Following the signature of the documents, five months were necessary for the parties to fulfill their assumed obligations: withdrawing mutual claims, obtaining the required rulings and court orders, and settling all disputes.

Why should we pay an intermediary?! Cooperation with Silver Fox will give you an answer to this question. OLGA SMIRNOVA

Details of the deal:
оproperty: two adjacent buildings in Old Riga; total area — 4 150 m2,
one building owned by a Latvian company, belonging to a Swedish holding company,
the second building owned by 5 private individuals, residents of Germany and Israel,
multiple lawsuits between the owners,
claims by third parties,
a probate case opened, with involvement of Orphan’s Court.
Tasks set by the buyer:
to buy both buildings in one transaction,
to settle all claims and lawsuits.
Task set by the sellers:
to sell, bringing an end to a long-lasting dispute.

The outcome

The deal was successfully closed in November 2012. Reconstruction of the hotel has been completed and it has recently welcomed its first guests.


Description of the deal

Direct bargaining did not bring an agreement on the price. Compromise between the buyer and the seller was found when both parties realized it was necessary to move from the master lease to direct agreements between sub-tenants of the shopping center and the new owner. This meant an actual increase in return on investment for the buyer, while the seller was able to focus on its prime business instead of administering relations with minor tenants.

In parallel, an agreement was reached on cooperation in improving ventilation and power supply systems, expected to cut costs in the long term and thus to increase profitability.

Silver Fox is able to find compromises
and convince the parties of their necessity. ANDRIS LONTONS

Details of the deal:
property: supermarket
(3,810 sq. m), physically attached to the adjacent DIY store,
owner of the property is also the owner of the supermarket chain, which is the property’s anchor tenant,
the property is mortgaged to a Swedish bank,
the sale price and the leaseback rate guaranteed returns of no more than 7% p.a.
Task set by the buyer:
to buy the property with a cash flow sufficient to secure returns of at least 8% p.a.,
to secure anchor tenant
to sign a contract on joint utilization of utilities networks with the owner of the adjacent building.
Task set by the seller:
to sell the property and sign the leaseback agreement for a master lease.

The outcome

Negotiations lasted 10 months, with the deal closing at the end of 2012 – a reasonable timeframe when a buyer is a cautious investment fund.


Description of the deal

The deal was complicated by the need to take over the existing sales-purchase agreement with another buyer, who failed to secure the necessary financing. Retaining the provisions agreed to by the seller was of critical importance because of the complicated communication between the owner and her representatives and in the absence of possibilities for direct negotiations between the buyer and seller.

Takeover of the existing purchase agreement was conducted through the takeover of SPV company of the previous buyer. After considering the obvious potential of the property (low sales price), the buyer took his investment decision quickly and financed the transaction himself, despite the potential risks.

I was surprised by the professionalism of the Silver Fox team, as well as their ability to negotiate in complicate situations. DMITRY CHALIY

Details of the deal:
property: historical building (architectural monument);
total space — 3 760 m2,
36 rent agreements, 12 out of which are long-term agreements,
he property owner resides in the USA and has delegated signing of the deal to her representatives,
existing signed sales-purchase agreement with a payment default.
Task set by the buyer:
to buy the property for reconstruction and subsequent sale of apartments,
to complete the deal within a short timeframe.
Task set by the seller’s representative:
to re-sell the property without changes to the provisions agreed upon with the American owner.

The outcome

The property is currently being prepared for reconstruction. Necessary approvals and permits should be received shortly and most apartments and commercial lots have already been vacated.


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