Category: Austria

Schoenherr and Clifford Chance have advised Hypo Vorarlberg on the synthetic securitization of a EUR 330 million portfolio of loans to small and medium-sized enterprises, corporate borrowers, or certain private individuals, which was provided by the European Investment Fund and European Investment Bank. Linklaters advised the EIF and EIB on the deal.

According to Schoenherr, “the transaction is designed to achieve regulatory capital relief under CRR (II) / CRD IV (V). The transaction is a part of the European Investment Bank’s response to support the Austrian economy following the COVID-19 pandemic. The regulatory capital relief arising from this transaction is intended to support Hypo Vorarlberg’s financing of the construction of new highly energy-efficient buildings, including building-integrated renewable energy capacities, and energetic refurbishment schemes of existing buildings in Austria. Through this transaction with Hypo Vorarlberg, the European Investment Fund and the European Investment Bank – in line with the ‘Green Deal’ agenda – seek to support energy efficiency-related investments.”

Schoenherr’s team included Partner Martin Ebner and Counsel Matthias Pressler.

The Vienna office of CMS has advised A1 Telekom Austria AG on the acquisition of Alcatel-Lucent Voice Business, the classic telephony business of technology service provider NTT Ltd.

The transaction remains subject to regulatory approval.

According to CMS, “the Alcatel-Lucent Voice Business has been and will continue to be available to customers of all sizes – from small businesses, hotels, government agencies, and hospitals to large corporations – even after the A1 takeover. A1 is planning to assume control of business operations in early 2021.” According to the firm, “A1 and NTT will continue to cooperate closely in the future. NTT in Austria is A1’s so-called First Partner for international business. NTT’s chief focus is now increasingly on technology solutions such as Intelligent Workplace, Intelligent Infrastructure, and Security Services.”

CMS’s team included Partners Alexander Rakosi, Dieter Zandler, Rasko Radovanovic, and Jens Winter, Associates Vanessa Horaceck, Marco Selenic, Anna Hiegelsperger, and Thomas Liegl, and Attorneys Mario Maier,  Anja Tasic, Dominik Stella, and Marie-Christine Lidl.

CMS did not reply to our inquiry on the matter.

Dorda has advised DLH Real Estate Austria on the acquisition of a 30,000-square-meter property in the Future Zone East industrial park from Vienna Airport Business Park and Airport Services VIE Immobilien. PwC Legal reportedly advised the sellers on the deal.

Financial details of the transaction were not disclosed.

According to Dorda, DLH will construct three logistics halls with a total area of around 17,000 square meters on the site. 

Dorda’s team consisted of Partner Stefan Artner, Attorney-at-Law Marie-Luise Pugl, and Associate Markus Buchleitner.

Dorda has advised DLH Real Estate Austria on the sale of a 65,000-square-meter section of the Industrial Campus Vienna East to Deka Immobilien.

Financial details of the transaction were not disclosed.

DLH Real Estate Austria is a subsidiary of the real estate division of the family-run Zech Group. The company specializes in the development of logistics real estate, including storage, industrial, and production facilities.

According to Dorda, the section acquired by Deka Immobilien is expected to be completed in the third quarter of 2021. The firm reported that, “after its completion, the Industrial Campus Vienna East will have a total area of over 120,000 square meters.” 

Dorda’s team consisted of Partner Stefan Artner, Attorney-at-Law Marie-Luise Pugl, and Associate Markus Buchleitner.

Dorda did not reply to an inquiry about the deal.

Editor’s note: After this article was published, Schoenherr informed CEE Legal Matters that it had advised Deka Immobilien on the deal. The firm’s team in Vienna included Partner Michael Lagler, Counsel Ayla Ilicali, and Associate Wolfgang Rapberger.

Former Contract Partner Klaus Pfeiffer and former Finad Partner Georg Burger-Scheidlin have become equity partners at Austria’s Weber & Co.

Weber & Co describes Burger-Scheidlin as a leading expert in corporate law, foundation law, as well as asset and succession planning. He also advises on shareholder disputes. He has a Magister’s degree and a Ph.D. from the University of Vienna and an LL.M. from the University of Edinburgh. Prior to joining Weber & Co he spent over six years with Finad financial advisory.

Pfeiffer has many years of professional expertise and experience in with real estate transactions, property development projects, construction projects, and construction litigation. Weber & Co describes him as “one of the leading experts in these areas in Austria,” and says that “he is a renowned estate and construction law expert [and] he specializes in advising [on] national and international real estate projects and transactions, with a focus on residential, logistics, retail, and hospitality properties.”

Pfeiffer has a Magister’s degree from the University of Salzburg and an LL.M. from University College London. Prior to joining Weber & Co in 2019, he spent two years with Graf & Pitkowitz and nine years with Dorda.

“Weber & Co. pursues a convincing multidisciplinary approach,” said Burger-Scheidlin. “This is an ideal basis for a cooperation with all partners of the firm in matters of wealth and succession planning. Moreover, I am pleased to be able to contribute my expertise in corporate law and foundation law to the firm’s outstanding corporate law practice.”

“Georg Burger-Scheidlin is the ideal partner so that we are in a position to support entrepreneurs and family offices to a greater extent in asset and succession planning,” said Weber & Co. Partner Katharina Kitzberger. “We also strengthen and broaden our corporate law practice, consolidating it in the top segment. We are proud to have Georg Burger-Scheidlin as our partner.” 

“Weber & Co. offers optimal conditions for excellent legal work,” added Pfeiffer. ”I look forward to being part of this outstanding firm as an equity partner and to expanding the real estate and construction law practice together with Daniela Witt-Dorring and the entire team.”

“As an excellent lawyer and a great personality, Klaus Pfeiffer has exactly the qualities that our clients appreciate,” commented Partner Daniela Witt-Dorring. “In recent years he has successfully positioned himself as a specialist in real estate and construction law. Not least because of him, Weber & Co., today, has firmly established itself in real estate and construction law.” 

Dorda has successfully represented Italian investor Francesco Becchetti in enforcement proceedings against the assets of the Republic of Albania in Austria.

According to Dorda, the dispute began in 2015 after Albania expropriated investments made by Becchetti and other Italian investors in the country’s hydropower, wind energy, and media industries. The investors initiated arbitration proceedings against Albania under the International Centre for Settlement of Investment Disputes convention, and in April 2019 an ICSID arbitral tribunal awarded them approximately EUR 100 million (plus interest and costs). However, according to Dorda, the Albanian government failed to comply with its payment obligations.

In order to collect up to EUR 25 million for Becchetti, Dorda commenced enforcement proceedings against Albania’s accounts and securities deposits at several banks in Austria. The firm noted that, “as Austria has acceded to the ICSID Convention, domestic courts must recognize and enforce ICSID arbitral awards.”

The District Court Innere Stadt Wien approved the application for enforcement on November 10, 2020.

“Enforcement proceedings like this one do not occur frequently, because countries usually comply with arbitral awards,” explained Dorda Partner Florian Kremslehner, who led the firm’s team on the matter. “The special situation here is also that parallel proceedings are conducted in many European countries, and enforcement is required in other states if state sovereignty is invoked.”

In addition to Kremslehner, Dorda’s team included Attorneys-at-Law Philip Exenberger and Alexander Karl and Associate Robert Keimelmayr.

Herbst Kinsky Partner Philipp Baubin will be leaving that Austrian firm to become an equity partner in Weber & Co.’s Finance and Capital Markets practice.

Baubin began his career in law at Dorda in 2007. After spending two years at the firm, he moved to Eisenberger & Herzog, where he stayed for another two. He was an associate at Skadden, Arps, Slate, Meagher & Flom from 2011 to 2014, at which point he joined Herbst Kinsky. He  obtained his Doctorate at the University of Vienna in 2007.

“Philipp Baubin is the ideal partner to optimally support corporations and financial institutions in structuring finance and capital market transactions,” said Stefan Weber, Partner at Weber & Co. “With Philipp Baubin as a finance expert, we will consolidate and expand the leading position of the firm in finance and capital market law.”

“Today, finance and capital market transactions are more complex than ever,” Baubin commented. “Weber & Co. offers the support that companies and financial institutions need to carry out these transactions efficiently and in a know-how based way. I am delighted to be a part of this outstanding firm and to lead the finance and capital market law practice together with Stefan Weber.”

New Counsel Victoria Pernt on Schoenherr’s impressive Arbitration practice.

CEELM: First, congratulations on your promotion to Counsel. That’s exciting news!

Victoria: Thank you. In fact, my promotion made quite the splash. Ever since it became public, my inbox has been overflowing with kind words and congratulations from around the world. I really felt like the whole arbitration community was celebrating with me.

I realized that receiving recognition as a young female arbitration practitioner is still quite exceptional. That’s also why I decided to launch my new project, myArbitration.

CEELM: What is “myArbitration”?

Victoria: The myArbitration project is a video series about arbitration – the profession and the community.

It portrays prominent characters, as well as rising stars, who share their personal stories, views, and passion projects. It promotes equality and diversity, and it features various initiatives and developments which improve the efficiency, transparency, and sustainability of international arbitration. It has been exciting work, and I am thrilled for its launch this October.

CEELM: That sounds really interesting. Where can people find the videos? 

Victoria: Follow myArbitration on YouTube and LinkedIn for the newest videos, additional material, and updates. Or check out the Schoenherr website at schoenherr.eu/arbitration.

CEELM: How did you develop your focus on international arbitration? Did you know back in law school that that’s what you wanted to focus on?

Victoria: In retrospect, international arbitration seems like the obvious choice. Even back in law school in Vienna, I was drawn to international and comparative law.

At the LL.M. program at the University of Chicago I had my first US-style advocacy training. That was intense. I loved it! With a passion for advocacy, a desire to work internationally, and a background in common and civil law both, international arbitration was the perfect fit for me.

CEELM: Tell us a bit about Schoenherr’s international arbitration practice.

Victoria: Schoenherr’s international arbitration practice is headed by Christoph Lindinger. We have a team of specialists in our Vienna office, cooperating with colleagues in our CEE offices on a regular basis. With our high-profile commercial cases and amazing track record in investor-state disputes, our arbitration practice leads the region. Schoenherr has been called “unbeaten at ICSID” (i.e., the primary forum for investor-state disputes) and has won an award for “most impressive arbitration practice.”

CEELM: Do you find, now, that companies are increasingly familiar with the benefits of arbitration over traditional litigation, or do you still need to spend time educating the market?

Victoria: Companies increasingly see the benefits of arbitration. Even so, it is important to educate the market on how to best use those benefits.

First, arbitration can and should be tailored to the specific case (such as which arbitration rules to agree on, or how to conduct an arbitration once the dispute arises).

Second, new tools and options are constantly being developed to increase efficiency (such as virtual hearings, paperless arbitrations, and expedited proceedings). Third, arbitration is very different from continental-style litigation, which gives added value to us arbitration specialists.

CEELM: Vienna is obviously an international center for arbitration. Do you see differences in how popular arbitration is in Austria compared to the rest of CEE, or in how familiar companies are with it?

Victoria: There has been a surge of developments relating to arbitration across CEE. One key factor is the advent of legal finance (i.e., litigation funding) in CEE jurisdictions. Schoenherr Partner Leon Kopecky has been on the forefront of that development.

CEELM: What successful arbitrations have you participated in that you’re proudest of

Victoria: Since I joined Schoenherr five years ago, our arbitration team has won many commercial and investment cases.

My personal highlights include my first cross examination in an ICSID arbitration (heard by the distinguished Professor Philippe Sands QC, The Honorable L Yves Fortier QC, and Professor Rolf Knieper), and acting as lead counsel in a EUR 2 billion pharmaceutical arbitration seated in Frankfurt.

This Article was originally published in Issue 7.9 of the CEE Legal Matters Magazine. If you would like to receive a hard copy of the magazine, you can subscribe here.

Schoenherr has advised Christian Bamberger, SK Capital GmbH, Foxyflo GmbH, Christian Waldheim, and Martin Mrvka on the sale of 100% of shares in Austrian communication-platform-as-a-service companies ATMS, SMS.AT, and WebSMS to Norwegian Link Mobility Holding ASA. AGP Advokater AS and EY Law advised Link Mobiliy on the transaction, which closed on November 16, 2020.

According to Schoenherr, “WebSMS is headquartered in Graz, Austria, and was established in 1999. It holds an MNO license in Austria and is considered the local market leader for the provision of mobile messaging and CPaaS solutions, with more than 5,000 enterprise clients. WebSMS also has significant business in Germany and Switzerland.”

Link Mobility is a European provider of mobile messaging and CPaaS solutions serving enterprise, SME, and government customers.

Schoenherr’s team was led by Partner Markus Piuk and included Attorney Manuel Ritt-Huemer and Associates Michael Kern Irina Hanin.

 

Herbst Kinsky has advised investment company Round2Capital Partners GmbH & Co KG on its EUR 6.6 million financing round.

According to Herbst Kinsky, Round2Capital, founded in 2017, “is a pioneer in the field of income-based finance in Europe.” According to the firm, “Round2Capital acts as a financing partner for European scale-ups with digital and sustainable business models. In contrast to classic venture capital transactions, no shares in a company are acquired for the investment, but a share in the turnover. The great advantage of revenue-based financing in contrast to VC is the speed of the transaction. Since the company was founded, Round2Capital has invested in 13 companies.”

Herbst Kinsky’s team was led by Attorney Johannes Frank with the support of Associate Christoph Renner.

Herbst Kinsky was unable to provide more detail on the transaction.