Advised Kenova Group in the acquisition of the former infectious disease hospital in Vilnius’ Žvėrynas district

Kenova Group, a real estate development company owned by the businessmen Norbertas and Kęstutis Faktorovičiai, acquired 100% of the shares in Power Group Property B1, the entity that holds a prominent heritage property in Vilnius’ Žvėrynas district, formerly operated as an infectious disease hospital.

The asset was acquired from a company indirectly controlled by Arvydas Paukštys, owner of the Teltonika technology group, who had originally purchased the property from the State Property Fund in 2021. This was a high-value transaction in one of Vilnius’ most architecturally and historically sensitive locations. The property presented distinct legal complexities beyond those of a typical share purchase.

The target asset is subject to cultural heritage protection requirements that significantly constrain what can be demolished, reconstructed, or newly built – meaning that legal due diligence had to assess not only corporate and title risks, but also the regulatory envelope governing the client’s future development ambitions. Structuring the transaction to properly reflect these constraints, while protecting the client’s position on representations, warranties, and conditions precedent, required close integration of real estate, M&A, and regulatory analysis.

Our Corporate and M&A team structured the transaction and advised Kenova Group through to a successful closing, managing the share purchase of Power Group Property B1 and coordinating all elements of the closing process. We ensured that the legal structure of the deal gave the client a clean, well-protected entry into a strategically valuable asset, with full visibility over the regulatory parameters shaping its redevelopment potential.

The acquisition positions Kenova Group to pursue a high-quality, community-oriented development in one of Vilnius’ most sought-after neighbourhoods. This matter reflects our firm’s experience advising on real estate M&A transactions where the asset’s regulatory and heritage context is as material to the deal as the financial terms and where precise legal structuring is essential to protecting long-term investor value.