Sorainen has advised Stockmann on the sale of its Tallinn and Riga department store properties to Viru Keemia Grupp.
"This was one of the biggest real estate transactions in the Estonian and Latvian markets in 2021," Sorainen informed. "The sale is a part of the corporate restructuring program and proceeds will be used to reduce secured restructuring debts. Stockmann will continue its department store operations in Tallinn and Riga under long-term leaseback agreements made with the new owner."
Tallinn department store property was built in 1996, with a net leased area of 22,980 square meters. The department store property in Riga was built in 2003 and has a net leased area of 15,965 square meters.
VKG Invest is VKG’s investment arm, focusing on financial investments primarily in the real estate area. VKG is a privately owned Estonian industrial corporation.
"We are pleased to have found a stable and reliable Baltic owner for the properties, that wants to develop the properties and our department stores in cooperation with us," Stockmann CEO Jari Latvanen commented. "Our department stores will continue their operations as normal."
"We are excited to be partnering with Stockmann in the Baltics," VKG Invest CEO Sten Pisang added. "Both landmark properties are exceptionally well-positioned in the growing capital cities of Estonia and Latvia, and we are looking forward to exploring follow-on investment opportunities to support the core business of Stockmann going forward."
The Sorainen team was led by Estonia-based Partner Paul Kunnap and included Senior Associate Mirjam Vichmann and Associate Andra Grunberg, as well as Latvia-based Partner Lelde Lavina, Counsel Janis Bite, and Senior Associate Viktorija Smirnova-Cerkasa.
Sorainen did not respond to our inquiry on the matter.
Editor's Note: After this article was published, Cobalt announced that it had advised VKG on the deal. The firm's team included Estonia-based Partner Aivar Taro, Senior Associate Sandra Sillaots, and Associate Helen Sool, and Latvia-based Managing Partner Dace Silava-Tomsone, Senior Associates Inga Tenisa, Martins Tarlaps, and Marija Berdova, and Associate Juta Meimere.