Our firm advised a real estate investment and management company on the sale of an industrial property it had acquired through a court-ordered auction, in a transaction valued at approximately €1 million.
The Mandate
The property had been used for the manufacture of building materials. It still contained fixed equipment installed by the former lessee, which was held under a judicial custody arrangement. After the auction, the former owners and the lessee were removed from the property and began litigation to annul the auction and challenge their removal.
Our Role
We structured a negotiated sale to a company affiliated with the former owner. The sale was conditional on the formal withdrawal of all pending litigation by both the former owner and the lessee, which, at the buyer’s request, took place at the same time as closing.
We also obtained the lessee’s consent to transfer the right to use the equipment on the property, held under judicial custody, to the buyer. Throughout, we coordinated the client, the buyer, the former owner and the lessee, and ensured that our client bore no liability for the earlier disputes, the sale or the third-party equipment.
Key Legal Issues
Auction-acquired properties are often followed by challenges from former owners and occupants. Settling those claims as part of a sale requires careful sequencing, so that the seller receives the price and the litigation ends in a single, coordinated step.
Why It Matters for Investors
A negotiated exit can turn a disputed auction asset into a clean sale. Structuring the transaction to resolve litigation and third-party rights at closing protects the seller and gives the buyer certainty.
For further information on auction acquisitions and real estate disputes in Greece, please contact our team.
