In a paradoxical deal, a small Lithuanian fund finances a large Austrian real estate aid

Photo by Vladimiro Ivanovo (V)

A consortium led by Orion Asset Management (OAM), a private equity fund managed by the Lithuanian investment management company Orion Private Debt Fund I, amounts to LTL 10 million. Eur finances the Soini Asset project in Germany, the real estate investment manager in Austria.

In the first stage, the Lithuanian consortium will invest in the transaction by providing financing of LTL 7 million. EUR, Lithuanian fund investment share 5 mln. Eur. In the second, 3 mln. In the Eur stage, investments will depend on bank financing for a new project. At this stage, the fund plans to invest independently.

Soini Asset currently manages a logistics fund for institutional investors and is developing a project worth over € 175 million. Eur. Funding is provided for Soini Asset’s existing portfolio of projects under development, valued at more than € 100 million. Eur, and the purchase of new ones. Part of the portfolio object is already sold in futures to institutional German real estate funds, V management company informed.

Lithuanian investment managers, which will finance the large Austrian manager, have structured the bond issue in this process and will represent investors in relations with the bond issuer.

Lithuanian investment managers describe the transaction as a rather paradoxically funded institutional echo, which is larger than ever for Lithuanian funds.

This is one of the biggest deals in the fund’s history, a deal in a new market with high-value projects that meet our expectations and shatter many of the myths about direct investment in Western European markets. We want this to be more than a one-time step, and we are currently analyzing several more options in Germany, Austria and Poland, says Ben Poder, head of investment management at Orion Asset Management.

The Management Company estimates that the diversification of the Orion Private Debt Fund I will result in a significant increase of 15 positions in the investee, the operations of which are not significantly dependent on the Baltic States.

According to us, this is the largest transaction of a Lithuanian private debt fund in the history of Lithuania and perhaps the first time that any Lithuanian fund invests directly in Germany, B. Poderis adds.

The mentioned managers have recently been trying to expand their client’s private equity and real estate investments outside the home market, arguing that Lithuania’s wealthy investments are too concentrated in the region.

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