Kinstellar has successfully advised TSH Investment, the joint venture between the real estate investment companies Trinity Capital and HUS Invest, on the acquisition of Park Center shopping mall, strategically located in the heart of Sofia. TSH Investment acquired Park Center from Revetas Capital Advisors, a European real estate investment advisor focused on distressed opportunities and value-add investments. The purchase is set to enhance the potential and attractiveness of the mall. Kinstellar advised on all aspects of the acquisition, including transaction structuring, debt restructuring elements, and real estate acquisition, by providing multidisciplinary support to the in-house team of TSH. The team was led
Kinstellar has advised UniCredit Bulbank as lead manager of the private placement of corporate bonds worth EUR 25 million by Minimart, a fast-growing chain of convenience stores in Bulgaria. The 250 bonds with a nominal value of EUR 100,000 each have a maturity of 5 years and an interest of 7.77%, paid twice a year. The bonds were subscribed by UniCredit Bulbank, Eurobank Bulgaria, Varengold Bank, and KBC Agro - Bulgaria. The private placement enables Minimart to further expand its retail network to 300 stores in 2025 and invest in its IT infrastructure. Kinstellar’ s team was led by Svilen Issaev (Head of Banking, Finance and Capital Markets in Sofia) and included Senior Associates Nikolay Gergov and Denitsa
Bulgaria aims to finalise the full implementation of its foreign direct investment (“FDI”) screening regime in early 2025. On 29 January 2025, the Council of Ministers approved the Rules on the Organisation and Operation of the Interinstitutional Council for Foreign Direct Investment Screening (“Rules of Procedure”) – one of the key legislative acts supporting the implementation of the Bulgarian FDI regime, which officially took effect in 2024 (see our publication here). There is currently a transitional period during which FDI notifications are not required, as the necessary implementing regulations have yet to be enacted. The adoption of the Rules of Procedure is one of the remaining steps in the process.
Kinstellar assisted United Energy Group (UEG)’s internal legal team to successfully complete the acquisition of Green Profit EOOD, a developer of a photovoltaic (PV) project under construction. The Simeonovgrad-Polyanovo PV project, located in southern Bulgaria, has a forecasted capacity of 250 MW. The acquisition, which was finalised on 15 November 2024, marks a significant expansion for UEG, a Hong Kong-based producer of traditional and renewable energy. The team that advised UEG throughout the completion of the project was led by Nina Tsifudina (Partner) and Atanas Mihaylov (Counsel) and included Mladen Minev (Counsel), Simeon Vachev and Nikolay Gergov (Senior Associates).
Kinstellar has advised Eleven Ventures, a pioneer in early-stage investing in Central and Eastern Europe, on the investment in Cloud Office, a leading Google Cloud Partner serving 650+ customers across EMEA, with a team of 60+ engineers, through subscription of preference shares and convertible debt instrument. One of Eleven’s largest investments in a Bulgarian company to date, the funds will support Cloud Office's expansion into Greece. The team was led by Nina Tsifudina (Partner) and included Georgi Kanev (Managing Associate), Nikolay Gergov (Senior Associate), Simona Damyanova (Junior Associate).
The Corporate Sustainability Reporting Directive (EU) 2022/2464 (the “CSRD”) required EU member states to complete its transposition by 6 July 2024. However, uneven implementation led the EU Commission to initiate infringement proceedings against 17 member states, including the Czech Republic and Romania, on 26 September 2024, citing their failure to fully communicate the necessary transposition measures. These states now face a two-month deadline to finalise the process and respond to the formal notice. While the CSRD’s transposition is nearing completion, attention is turning to the Corporate Sustainability Due Diligence Directive (EU) 2024/1760 (the “CSDDD”), an equally significant piece of legislation.
Our TMT Legal Update provides insights from our law experts and aims to keep you regularly up to date with sector news, trends and legislation in the Central and Eastern Europe and Central Asia regions. This issue covers key updates from our jurisdictions from the past few months. REGIONAL Implementation status of certain EU regulations Technology 01. New development regarding NIS 2 Directive implementation in various Kinstellar jurisdictions The EU's NIS2 Directive is a cybersecurity act aimed at improving overall cybersecurity in the EU. Member States must implement it by 17 October 2024. Below we provide
As we have previously reported, just a few months ago Bulgaria introduced major changes to the regulations governing organisers of gambling games and activities (including service providers connected with the gambling industry) and gambling advertisements (see the original article here). These changes have recently been further clarified with a decision of the regulator and additional proposed amendments in relevant rules. Below are some key updates: Online advertising A recent decision of the National Revenue Agency (“NRA”) clarifies that the legislative changes were intended to restrict gambling advertisements to Bulgarian media outlets and their websites, rather than across the entire Internet. This means
Kinstellar advised Peter Mitev, co-founder and former CEO of Chaos Group, a global leader in computer graphics technologies, and Big Orange Foundation, on the legal aspects of their joint venture with Raycho Raychev, founder and CEO of Endurosat, one of the fastest growing satellite companies in the world, in relation to the acquisition of a landmark 17,000 sqm building in Sofia, Bulgaria. The building is strategic for Endurosat's vision for the development of the space sector and will be used for space research and other key operations. The acquisition of the building, formerly the headquarters of Alpha Bank, is the largest office transaction on the Bulgarian real estate market for the year 2024 to date. The Kinstellar
Kinstellar has advised the Mitiska European Real Estate Partners 3, a real estate fund managed by Mitiska REIM, on its entry into the real estate market in Bulgaria through a joint venture (JV) with Park Lane Developments. Mitiska REIM, the leading specialist investor in European convenience real estate, and Park Lane Developments, a leading commercial property company developing and managing prime office, logistics/light-industrial, and retail park assets in CEE, plan to develop and open at least five prime retail parks in Bulgaria over the next five years. Kinstellar advised on the structuring and implementation of the JV. The team was led by Partner Antonia Mavrova (Head of Real Estate, Construction &
The Council of the European Union has recently adopted a new set of Anti-Money Laundering (AML) rules, nearly three years after the European Commission unveiled its package of legislative proposals. The legislative package introduces significant changes to the EU’s AML and Countering the Financing of Terrorism (CFT) landscape, including: A more detailed and synchronised approach as to implementing parts of the AML/CFT regulations such as in respect of client due diligence, internal policies and identification of beneficial owners; A requirement for each obliged entity to have a compliance manager (member of the management body/senior management); Extending the list of obliged entities to include (amongst
In an era defined by digital transformation and the ever-evolving landscape of financial services, the concept of banking as a service (“BaaS”) has emerged as a key force reshaping the industry. By enabling non-bank entities to offer financial services through partnerships with licensed banks or financial institutions, BaaS has opened up a new realm of possibilities, facilitating innovation, enhancing customer experience and promoting financial inclusion. However, realising these opportunities is closely linked to navigating the complex regulatory framework that governs BaaS operations. BaaS can take various forms, allowing non-licensed entities to provide financial products such as banking, payment, e-money