Category: Lithuania

Fort Vilnius has advised EfTEN Real Estate Fund III on its acquisition of the L3 office building in Vilnius from E.L.L. Real Estate. Valiunas Ellex advised E.L.L on the deal.

Fort describes L3 as a 10-story building with 6,100 square meters of rental space and an outdoor parking lot with two hundred parking spaces located “in a very green part of Vilnius.”

The Fort team was led by Partner Ruta Radzeviciute-Meizeraite and included Partner Andrius Mamontovas and Associates Aurelija Grigoraviciute and Vadimas Maksimenka.

The Valiunas Ellex team was led by Associate Donata Montvydaite.

Image Source: ell-realestate.com

Sorainen Lithuania has advised Moneta International on establishing a company and launching operations in Lithuania.

Moneta International operates a payment platform and provides services for e-commerce companies. The company plans to invest more than EUR 1 million in FinTech projects in Lithuania, Sorainen reports, and hire approximately 15 qualified employees.

“We visited six European countries searching for a location suitable for our investment,” said Eyal Nachum, Chairman of the Board at Moneta International. “We chose Lithuania after careful evaluation of the factors that every start up, especially in the FinTech sector, must take into account: clear and rational regulation, political stability and confidence in the system, and most importantly – the state authorities’ intention to make the country a leading FinTech jurisdiction. Unlike in most countries, in Lithuania it is more than just words when it comes to this intention.”

Sorainen Lithuania’s Startup Practice Group assisted Moneta International in establishing the company, advised on licensing, the operating model and other questions. The Sorainen team included Associates Arturas Asakavicius and Vytautas Sabalys.

Primus has advised Lithuanian company UAB Hekon, a subsidiary of Orbis S.A. — part of AccorHotels — in concluding a preliminary sale and purchase agreement with the UAB Merko Bustas construction company to build a 164-room hotel with restaurant, bar, and conference halls. The value of the transaction is EUR 8.5 million.  

According to Primus, “AccorHotels is the world’s leading hotel operator and offers more than 20 brands of hotels that meet every type of need from luxury to economy, such as Sofitel, Pullman, Novotel, Mercure, ibis and others. The Group has more than 4000 hotels in 95 countries all over the world.”

The Primus team included Managing Partner Robert Juodka, Partner Tomas Venckus, and Associate Partner Liutauras Bikstys.

Image Source: accorhotels-group.com

Glimstedt has advised SportingPulse International on its acquisition of UAB Media Benz Telekomunikacijos from two Lithuanian individuals, one of whom — the founder and CEO of the company — will stay on in that latter capacity.

Glimstedt describes SportingPulse International — which subsequently transformed into Genius Sports — as “one of the worldwide leaders in IT solutions related to sports statistics,” and reports that “UAB Media Benz Telekomunikacijos, which became UAB Genius Sports LT after the transaction, has been one of the leaders in IT solutions related to European basketball statistics.”

The Glimstedt team was led by Associate Partner Andrius Ivanauskas, assisted by Senior Associates Karolina Baronaite-Birmonte and Edvard Gasperskij, and Associate Sebastian Okinczyc.

Glimstedt is reporting that it successfully defended the interests of security company G4S and its insurer ACE in an appeal of a EUR 3.5 million decision concerning the Senoji Kibinine restaurant that burned down in summer 2010.

According to the firm, “by its ruling of 7 October 2016, the Court of Appeal of Lithuania upheld the first instance decision that the security company provided services in a proper manner and that actions of the company (its security guard) were in conformity with the contractual obligations and the requirements of the physical protection manual, thus rejecting the claims for damages by claimants and insurance companies.”

Glimstedt reports that its team “in these long and complicated proceedings covering the legal issues of contractual civil liability, as well as insurance relationships and invalidity of transactions” was led by Associate Partner Inga Klimasauskiene.

Sorainen Lithuania has advised DNB Bank ASA, the largest financial services group in Norway, on the grant of a loan to Norwegian real estate development group Schage for the development of the Quadrum business center in Vilnius. According to Sorainen, “the total disclosed value of Schage’s investment in the project is EUR 100 million.”

Quadrum is the first business center in Lithuania designed and built according to the Building Research Establishment Environmental Assessment Method. Sorainen reports that, “the new business center is like no other in Lithuania in terms of structure and size,” as it “comprises three buildings, which together with other spaces covers a total area of 70,000 square meters” and “contains both business premises and a recreational zone in the form of a green yard open to Vilnius residents and visitors, an underground parking facility with 700 spaces, as well as separate cultural and service areas.”

Sorainen advised DNB Bank ASA on issues of Lithuanian law and with regard to the financing documents. The firm also advised on defining the structure of the security portfolio and preparing related documentation as well as in negotiations.

The Sorainen team was led by Partner Tomas Kontautas, supported by Specialist Counsel Augustas Klezys and Associate Lina Ragainyte.

Sorainen did not reply to our inquiry about counsel for Schage on the deal.

Glimstedt has advised UAB Marina Nida on its entrance into a deal with Carlson Rezidor, a top international hotel operator, to open a five-star Radisson Blu Hotel & Spa Nida Marina on the Curonian Spit. The hotel will overlook the Curonian Lagoon and is expected to open its doors by the end of 2019.

Gintautas Bertasius, Board Member of UAB Marina Nida, said, “professional and effective service rendered by Glimstedt in negotiations with the one of the world’s largest hotel companies has substantially contributed to the successful completion of the initial stage of this project.” The firm continues to provide legal support to UAB Marina Nida on matters relating to the development of the hotel complex project. 

The Glimstedt team was led by Partner Kestutis Jaskutelis and Senior Associate Eivydas Sadauskas.

According to Sadauskas, “taking into account the exceptional Carlson Rezidor Hotel competence on hotels operation activities, negotiations were represented by their internal lawyers.”

Carlson Rezidor also recently concluded a similar hotel management contract with Lords LB Special Fund I, represented by Sorainen, relating to the opening and management of a Radisson RED hotel in Vilnius (as reported by CEE Legal Matters on October 12, 2016)

Glimstedt has advised Linstow AS on the crossborder sale of its stake in UAB Baltijos Parkai, which holds Park Inn hotels in Vilnius and Klaipeda, to UAB Green Hotel.

Glimstedt advised Linstow on the structuring and planning of the transaction and drafted transaction documents, as well as facilitating acquisition financing in a Lithuanian bank. The firm’s team was led by Partner Andrius Ivanauskas, assisted by Associate Sebastian Okinczyc, among others.

Green Hotel was not represented by external counsel.

Image Source: radissonblu.com

Sorainen has advised a subsidiary of Lords LB Special Fund I, a fund belonging to investment management company Lords LB Asset Management, on its conclusion of a hotel management contract with operator Carlson Rezidor regarding hotel opening and further activity in Vilnius under the Radisson RED name.

The hotel, to be opened in 2020 in the developing k18b complex in Vilnius, will be one of the few Radisson RED hotels opened in Europe and the first Radisson RED hotel in the Baltics. According to the hotel operator, Radisson RED reflects a new hotel philosophy directed at areas of art, music, and global fashion trends.

Sorainen advised and represented the fund and its subsidiary in negotiations with the hotel operator related to hotel management contract matters. The firm’s team consisted of Partner Kestutis Adamonis and Associate Lina Stropute.

Image Source: radissonred.com

Cobalt has advised UAB Bite Lietuva, one of the largest mobile operators in Lithuania, on its application for and receipt of a limited-purpose license to operate as an electronic money institution. 

The licence issued to the Bite Lietuva by the Board of the Bank of Lithuania authorizes it to carry out activities related to issuance of electronic money and provision of payment services, and, according to Cobalt, “will enable the company to offer services to private and corporate customers allowing for the safe transfer of money in just a few seconds knowing only the recipient’s phone number.” Bite Lietuva will invite customers to create their own accounts and use the instant payment system to transfer money to other individuals or to pay for online purchases of goods or services.  

In providing instant payment services UAB Bite Lietuva will join the National Payments Strategy infrastructure development project implemented by the Bank of Lithuania. It is expected that this step will help to reduce the use of cash, promote competition in the payment services market, and expand and improve modern payment options. According to Cobalt, “it is foreseen that other major players on the market for telecommunications services will also join the project.”

The Cobalt team advising Bite Lietuva was led by Partner Akvile Bosaite, supported by Associate Monika Kriunaite.