COBALT advises VPH on development of a new shopping complex in the centre of Riga

The real estate developer VPH has commenced development of a new shopping complex in the centre of Riga, with the total investment of up to EUR 40 million. The project will include also offices, a catering sector, a kindergarten, a sports and health center and other services.

The former Riga Dairy Factory site of 4.7 ha at Valmieras Street 2, Riga was acquired in May of this year with the financial support of Rietumu Banka. The developer plans to complete the design by mid-2023, start construction and open the new complex in the second half of 2024. A number of buildings with historical and cultural value are located within the territory. They will be preserved and restored to enhance a special image of the entire complex.

Dace Silava-Tomsone, COBALT Managing Partner: “We are pleased to see that a long-neglected historic quarter in the downtown of Riga will finally come to life. Knowing the reputation, experience and energy of VPH, there is no doubt that the quarter will become a valuable addition to Riga’s business and leisure infrastructure.”

COBALT provides a full legal support in the project, including the legal due diligence of the target, drafting of transaction documentation, representation in negotiations with the bank and the seller. The developer was advised by Managing Partner Dace Silava-Tomsone, Specialist Counsels Andrejs Lielkalns and Edgars Pastars, and Senior Associate Juta Meimere.

VPH Group develops and manages world-class commercial real estate for international and strong domestic tenants across the Baltic states. VPH Latvia has developed shopping centres “”Sāga” and Mežciems”, a shopping complex in Ziepniekkalns at Valdeķu iela with Lidl as its anchor tenant, as well as Hampton by Hilton hotel next to the airport that opened its doors this spring.

A team of architects from TP Bennett (United Kingdom) and DUAL arhitekti (Latvia) are involved in the development of the project. InSign is engaged in the attraction of tenants and on property management issues.