Riga, Latvia, 2016-11-09 07:42 CET (GLOBE NEWSWIRE) -- Due to relatively positive trends on the real estate market and consistent implementation of the company’s business strategy, Pillar group continued decreasing its property portfolio. This year, 150 properties have been sold for EUR 9.3 million.
Over nine months, 82 uniform apartments have been sold by Pillar: 58 of those in Riga and 24 – outside Riga. In total, 12 apartments in new projects have been sold, as well as 30 private houses, 22 land plots, and other properties.
Thus, Pillar allocates increasingly more resources to the following cycle of operations, which involves development of large-scale New Hanza City (NHC) project. Therefore, on 4 July this year, Pillar started the construction of NHC infrastructure, which includes the first stage of laying the streets and engineering systems, incl. water supply, sewage, heat, and electricity supply systems. These works are planned to be completed by summer 2017. The functions of the general contractor of this project are performed by Pillar Contractor, SIA. Following the installation of engineering systems – in Q2 2017 – it is planned to begin the construction of the ABLV central office and an additional office building.
In the second half of the year, the best idea for reconstruction of the warehouse building of the former Riga railway goods station, located on NHC territory, was chosen – the solution proposed by the architecture bureau Sudraba arhitektūra, the author of which is architect Reinis Liepiņš. After the reconstruction, the building is supposed to become a multifunctional cultural centre, in which premises will admit up to 1000 visitors.
Two more residential buildings on NHC territory are currently being designed – these will be premium class and middle class apartment blocks, consisting approximately of 100 apartments each.
Pillar Chief Executive Officer Ieva Valtere noted: ‘Residential property market development scenario allows forecasting that the properties we currently have will be sold during the following two years. Moderate growth is observed on the market, and the demand is traditionally higher in the segment of uniform apartments. The properties remaining in our portfolio are mostly those apartments. Therefore, we have considerably increased our capacity of NHC development, also raising appropriate labour resources.’
Pillar group, established in 2008, is owned by the largest private bank in Latvia ABLV Bank, AS and it includes companies that operate in the field of real estate development, management, and trade. Pillar group includes Pillar Management, SIA, Pillar Holding Company, KS, New Hanza City, SIA, and other companies. In total, Pillar supervises about 300 properties worth approximately EUR 38 million. So far, the company has invested a total of EUR 20 million in renovation of properties. Since 2013, Pillar has been the major sponsor of the Annual Award in Latvian Architecture organized by the Latvian Association of Architects.
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