Astor Group receives EUR 25 million loan to develop its hotel property business in Riga

Rietumu Banka has extended loans totalling EUR 25 million to Astor Group companies, which are involved in the management and development of prominent hotel properties in Riga, such as Radisson Blu Daugava, Radisson Blu Rīdzene, Park Inn by Radisson Valdemara, Park Inn by Radisson Residence Riga Barona, and Radisson Hotel Old Town Riga. The financing was provided for both the company’s working capital, future development and refinancing of current liabilities.

There are plans to renovate certain properties and expand their functions in the near future, and furthermore, the company intends to enhance the infrastructure of the existing properties to achieve more sustainable use of energy.

Astor Group is a group of Latvian companies that have been developing real estate for hotels in varying market segments under the Radisson brand for over 20 years.

As part of the transaction, COBALT provided full legal support to the representatives of the Astor Group, including advising on the financing, drafting transaction documentation, and representing them in negotiations.

COBALT team included Partner Toms Šulmanis and Senior Associate Inga Tenisa.