Sales of Pillar group reached EUR 19.3 million in the first half of the year

Riga, Latvia, July 18, 2013, 10:31 / Banking

The first half of 2013 was successful for real estate development and trading group Pillar, and its sales reached EUR 19.3 million. Whereas during the whole 2012, Pillar sold properties for EUR 15.7 million in total.

There were 237 property sale transactions made this year. The customers' activity has grown in respect of all residential property segments – premium class, new projects, and existing homes. Among properties sold, 44 were the apartments in new projects and renovated buildings, including 13 premium class apartments in Elizabetes Park House project. Also there were 169 apartments in existing homes sold.

It should be noted that Pillar group sold all shares of capital of Pillar 17, SIA, on the 25th of June. The assets of this company were real estate in Jurmala. The total transaction amount reached EUR 1.4 million, and this was already the fourth transaction over the last years under which both properties constituting the company’s assets and the affiliate company of Pillar Holding Company, KS, have been sold together. Also, liquidation of Pillar 13, SIA, has been initiated due to successful achievement of set business objectives and actual termination of operations.

Assessing the achieved results, Pillar Chief Executive Officer Ieva Valtere emphasized: “In the second quarter of the year, compared with the first one, there was a slight decrease in the customers’ activity observed due to seasonal factors – summer and vacation period. We predict growing customers’ activity in the following months, since increase in the paying capacity and Latvia’s accession to the euro zone are good preconditions for this.”

In the first half of the year, Pillar completed and put into commission one of the most exclusive real estate projects in Riga – Elizabetes Park House. The building is located in Riga centre, at Elizabetes 21a. The renovation of the building began in June 2010 and was completed in January 2013. Investments in the building acquisition and renovation amounted almost to EUR 11 million so far. There are 18 premium apartments built in Elizabetes Park House. Most of those were sold already during the renovation. Currently, there are 5 apartments available.

It should be noted that we launched a special property renovation programme this year, under which part of the residential properties included in the company’s portfolio will be completely renovated. Under the programme, apartments in prestigious buildings located in Riga centre and nearby will be renovated, alongside several newly built private houses in Riga environs. Currently, renovation of two properties has been completed, and it is planned to increase their number to 50 by the end of 2014. The total investments in renovation programme in 2013–2014 are planned to amount to EUR 2.5 million.

Continuing active work on development of the project important both for Pillar and the whole ABLV Group – the financial and business centre New Hanza City – there were first construction works started at the project territory in Riga, at Pulkveža Brieža 28a, in May 2013. Those works will result in construction of the Pillar office building. It will be a fully finished wood-frame two-storey building with built utility systems, appropriate for office needs. The building was designed by Arhitektūras un dizaina firma APlus, architect – Dace Kalvāne.

Considering the customers’ demand, in March this year Pillar started renovation of modern apartment block in Dzirciems, at Dārza 32 in Riga – Dārza Apartment House. The property was acquired for EUR 4 million, and the company plans to invest the total of EUR 1.1 million in renovation. All renovation works are planned to be completed till September this year.

Our development plans include a number of new projects, e.g., apartment block Lielezeres Apartment House, renovation of premium class apartment block Miera Park House in Riga, at Miera Street, and also several individual projects. More information about Pillar and offered properties can be found on our home page

Pillar Holding Company, KS, is owned by the largest private bank in Latvia – ABLV Bank, AS, and it includes ABLV Group companies that operate in the field of real estate development, management, and trade. Pillar holds one of the largest real estate portfolios in Latvia, which comprises apartment blocks, apartments, private houses, land and commercial properties. In total, Pillar supervises more than 1400 properties worth about EUR 84.9 million. So far the company has invested the total of EUR 12.9 million in renovation of properties.

Jānis Bunte
PR Specialist
Pillar Management, SIA
Tel.: +371 6777 5432