On August 4, 2022, CEE Legal Matters reported that Walless had advised REWO on the sale of the Talino real estate project. CEE In-House Matters spoke with Edvinas Malevskis, CEO at REWO, to learn more about the deal.
CEEIHM: To start, please introduce us to REWO and its operations in Lithuania.
Malevskis: REWO is one of the leading real estate developers in Lithuania that focuses mostly on residential developments. The company’s key strengths are flexibility and innovations: REWO was among the first in Lithuania to issue bonds for residential estate development, convert industrial buildings to loft apartments, and develop block apartments with individual terraces and a separate entrance for exclusive privacy. One of the new strategic directions for the company is to attract local and international institutional investors or funds to the Lithuanian residential sector. Over the next 4-6 years, the company plans to develop over 2,500 new apartments in various segments (economy, middle, premium class) out of which 25% will be marketed as an investment opportunity for bulk buyers – institutional investors or funds.
CEEIHM: What do you think made the target particularly attractive to the buyer?
Malevskis: The Talino project is an economy-class, family-friendly, and modern apartment development with highly-developed infrastructure, including good access to the city center and green areas for future residents in the close surrounding. This and our experience with such developments perfectly aligned with the strategic direction of the EfTEN Residential Fund in Lithuania.
CEEIHM: What were the most complex aspects of the deal from a legal perspective?
Malevskis: At the time of the deal, the construction phase of the project was not yet underway, therefore we had to manage market risks to ensure that both parties were comfortable with the deal. From the developer’s side, we had to take inflation and other external risks into account and the buyer wanted to feel secure about the future value of the investment. The lawyers performed an excellent job in managing these risks and balancing responsibilities in a way that both parties feel comfortable agreeing on the transaction.
CEEIHM: How was the legal work split between your external counsel and your in-house team?
Malevskis: Our in-house lawyer and the Walless team led by Partner Evaldas Klimas worked hand in hand throughout the whole process. We shared our experience, from internal processes to industry experience, to find the best solutions for both parties to the deal.
CEEIHM: And why did you pick Walless as your advisor on the deal?
Malevskis: We chose Walless for this deal because of Evaldas Klimas, the head of their real estate practice team, and his experience in the field. Evaldas’ extensive experience with the real estate development sector and knowledge of construction and territorial planning law were key to concluding this deal.
