Primus has advised a joint venture of Lumi Capital and LHV pension funds on their July 2017 entrance into a transaction with a joint venture of Hepsor Kinnisvara and Tolaram Group to develop and acquire two apartment buildings in the new Sitsi Ounaaed development in the Pelgulinn district of Tallinn.
Sitsi Ounaaed, which is located on the area of a former textile industry at the corner of Sole and Sitsi streets in Tallinn, consists of four apartment buildings and one parking structure. LHV and Lumi Capital will acquire two of the apartment buildings, which include 127 apartments and some of the parking spaces. The sole investor for the strategy are pension funds managed by LHV Varahaldus, while Lumi Capital will manage the investments and is engaged in finding more suitable projects.
According to Mihkel Oja, Chairman of the Management Board of LHV Varahaldus, "the aim is to have long-term tenancy and management of rental apartments for the purpose of rental income."
Primus advised the joint venture of LHV pension funds and Lumi Capital in the transaction on preparing and negotiating all transaction documents. The Primus team consisted of Partner Ermo Kosk and Senior Associate Rutt Vark.