On April 22, 2021, CEE Legal Matters reported that TGS Baltic had advised the Evernord Real Estate Fund III, managed by Vilnius-based investment firm Evernord Asset Management, on its acquisition of a 65% stake in Riga's Novira Plaza business center. CEE In-House Matters spoke with Arnas Vedeckis, CFO and Member of the Board at Evernord, to learn more about the deal.
CEEIHM: Tell our readers a bit about Evernord?
Arnas: Evernord is a group of companies that provides investment services to HNW individuals in the Baltic states, focusing on Lithuania. We have three main divisions: wealth advice, asset management, and consultations in various ad-hoc projects.
The main company (Evernord UAB FMĮ) holds a B-category brokerage license and manages clients’ investment portfolios, distributes investment products, organizes bond issues, as well as provides custody and settlement services for its clients. The company has been established via a management buyout from the Finnish investment bank EVLI. Thus it still has a close relationship with the bank and distributes its investment products.
Evernord Asset Management manages collective investment undertakings intended for informed investors. Currently, we have three real estate funds, one in each Baltic state. The company is also supervised by the bank of Lithuania.
Finally, we also help our investors to diversify their investment portfolios by developing projects that can provide constant cash flows for shareholders. To sum up, we are an investment boutique that manages around 100 million worth of client assets.
CEEIHM: TGS Baltic advised the Evernord Real Estate Fund III on its acquisition of a stake in the Novira Plaza business center. What were the main drivers behind the acquisition?
Arnas: The most important driver was the location and scarcity of such land plots in the area. The Property represents a strategically good fit for the fund that focuses on high-quality assets. The A-class business center will be located in central Riga next to 4 hotels, a newly developed Origo shopping mall/office center, and the Riga central train station in which the city plans to invest EUR 500 million by 2024. The second driver was a strong partnership with the developer. Our previous experience with Estonian developer Novira Capital was very successful and has laid a solid ground for our future cooperation. Finally, the supply of modern office buildings in the center of Riga is very limited. Almost all offices here are located in renovated apartment buildings, and new construction business centers are usually located further away from the old town. That is why we see a great perspective in this project.
CEEIHM: What are your company’s plans for the business center, following the acquisition?
Arnas: Now the main aim is to finish the development on time and within the budget that both stakeholders have agreed on. The underground construction works have already started, and we are getting ready for the above-ground construction tenders now. The fund, the developer, and real estate brokers are also currently working on gathering a well-diversified portfolio of future tenants.
CEEIHM: What was TGS Baltic’s mandate on this deal?
Arnas: TGS represented us by coordinating the shareholders’ agreement with the co-investor and the agreement with the company ensuring the development of the real estate object. The firm's lawyers also assisted Evernord in establishing a third closed-end investment fund for informed investors, which was open to a limited number of pre-selected individuals.
CEEIHM: What made you choose TGS Baltic as your advisor?
Arnas: Our group already has a long partnership with TGS on matters related to investment services, thus they are our top choice when choosing legal advisors. We are confident about their expertise and are very happy to have them on our team along the way. TGS always goes the extra mile to meet our high standards.
Originally reported by CEE In-House Matters.