Norwegian Schage Eiendom AS

Challenge

Quadrum is the largest office complexes in Lithuania at the heart of CBD. The business center has 3 buildings: East consisting of 17 floors, North consisting of 12, South consisting of 9. At the time the transaction took place, South building was at the construction stage.

However, the biggest challenge was not the unfinished construction but the size of investment. It is a 44 000 sq. m. property, the biggest business center in the Baltics. The latest transactions in Vilnius CBD were executed at the lowest yields since 2008, thus the sale of Quadrum BC was expected to reach an even lower yield. Having in mind the expectations and the latest similar size transactions, it was clear that the list of potential buyers should mostly consist of international market players.

Customer

Schage Real Estate

Services provided

Advising on investment transaction

Location

Vilnius, Lithuania

Summary

Gave a full advice on the transaction, prepared marketing materials, conducted the sales process and closed the deal

Status

Quadrum BC sold to German Deka Immobilien for 156.1M Eur

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