Danske Bank HQ in Tallinn sold to Estonian ESTIKO

CHALLENGE

One of the challenges in the sale of Danske HQ, was that the property was offered to the market for the second time. First attempt 2 years ago did not result into a transaction. 

However, as a result of the first sale process the property was known inside out to all the local buyers, and the Seller was perceived as not motivated to sell. In the light of Danske AML scandal in Estonia, local/regional investors were looking skeptical into the property, making the sale even more challenging. 

Also, Danske decided and announced about exit of Estonian branch from the market and thus could not extend the lease for long period, thus this was essentially a conversion/reconstruction case limiting the scope of potential buyers. All of the potential buyers took this message as an opportunity to get an extremely good price.

Customer
Danske Bank Estonia
Services provided
Advising on investment transaction
Location
Tallinn, Estonia
Summary
Gave full advice on the transaction, prepared marketing materials, conducted the sales process and closed the deal together with a local partner Redgate.
Status
Danske HQ sold to a local investor Estiko for a confidential price.

SOLUTION

The buyers who participated in the first sale process were convinced to look into the project once again in order to maximize the number of offers. Then, it was decided to let several interested parties into the DD process in order to

ensure deal certainty and void last minute price negotiations. Arranging a quality sale and DD process was the key in keeping all interested parties motivated.

 

Despite the challenges and non-typical case, Newsec managed to find a decent pool of investors interested into conversion/reconstruction cases and convince potential buyers to take a closer look into the property for the second time, create a fair competition and sell the property for a good price.

OUTCOME

Despite the unusual challenges and skepticism of the potential buyers due to repeated process of sale, transaction was executed successfully and sold for a two times higher price than the one which has been offered by most of the developers to Estiko.

contacts

Neringa Rastenytė-Jančiūnienė
Head of Capital Markets, Newsec Advisory in the Baltics
n.rastenyte@newsecbaltics.com +370 686 17 468
Andrius Švolka, CFA
Head of Transactions, Newsec Advisory in the Baltics
a.svolka@newsec.lt +370 622 23305
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