We are advising Lumi Capital and LHV pension funds on the acquisition of rental buildings
Lumi Capital, together with LHV pension funds, have concluded an agreement with Bonava, as a result of which two new rental buildings with all conveniences will be established in the future residential district of Uus-Mustamäe, on the outskirts of Mustamäe. The rental buildings will be completed in the second half of 2021.
The rental buildings to be built in the Uus-Mustamäe residential district will feature 84 one-, two- and three-room apartments. The rental buildings form a part of the comprehensive living environment developed by Bonava, in which 750 new homes will be completed over the next 5-7 years.
“Lumi Capital will continue looking for investments all over Tallinn, to create brand new rental apartments, for which there is a great demand. In cooperation with LHV pension funds we plan to increase the portfolio of rental houses to 500 apartments,” commented Martin Rekor, partner at Lumi Capital.
The transaction is the second investment in rental buildings in the cooperation of Lumi Capital and LHV Pension Funds. The first investment was the Lumi Kodud rental buildings, with 127 apartments, acquired in the Manufacture district, which will be completed next spring.
Ellex Raidla’s Partner Ermo Kosk, Senior Associate Sandra Värk and Associate Marilin Laud are advising Lumi Capital and LHV pension funds with establishing the legal structure of the transaction, conducting the legal due diligence and drafting and negotiating transaction documents. Ellex Raidla’s team previously assisted with the legal aspects in the Manufacture district rental buildings project.