During nine months the sales results of Pillar Group reached EUR 26.9 million

Riga, Latvia, October 21, 2014, 09:25 / Investments

Along with a general growth in the property market during nine months of this year, good results were shown by the property development and trading group Pillar that within 9 months has managed to sell properties with a value of EUR 26.9 million. Whereas in the same period last year the sales results equaled EUR 24.8 million.

Due to investing funds in reconstruction and property development and following work of property sales, the amount of properties owned by Pillar has radically decreased — at the moment, they are around 750, whereas in 2014 their quantity amounted to 1400. This proves that the strategy of offering to clients qualitative, fully accomplished and improved properties, chosen by Pillar - is justifying.

Within nine months, the total amount of Pillar sales deals has increased together with their number. During these months, 475 sales deals were closed, that is 28% more than in the corresponding period last year.

As for new and reconstructed properties, 113 apartments were sold, among them there were 4 premium-class apartments in “Elizabetes Park House”. In uniform apartment blocks, 314 apartments were sold: 216 apartments in Riga and 98 outside the city. Along with these sales, 29 sales deals of private houses were concluded and 8 land plots were sold.

Chief Executive Officer of Pillar Ieva Valtere admits: “As well as in the first two quarters, in the third quarter this year, as before, activity in the property market remained high in all residential space sectors, that is determined by the growth of residents’ paying capacity and the return of credit funds to the market. At the moment, we are witnessing the growth of activities, as many people are hurrying up to buy property till the end of the year, while current opportunities of mortgage lending are still available. Next year launch of “hand keys back” principle, most probably, will worsen terms of mortgage lending. Already now, commercial banks predict that the introduction of this principle in 2015 will negatively influence mortgage lending”.

It is worth noting that in the premium-class apartment block “Miera Park House” construction works are being carried out, applying new technologies to meet high quality criteria. The sale of apartments is going to start already in the second quarter of 2015.

Not marking time, we are developing one of the most important projects for Pillar and ABLV Group in general — the financial and business centre “New Hanza City”. In August, having undertaken the development of New Hanza City (NHC), Pillar purchased Riga’s office of the German architect bureau Schaller Kyncl Architekten Stuttgart. Thus, a new enterprise Schaller Kyncl Architekten Riga joined Pillar group. The aim of the architect bureau takeover is to concentrate all processes related to the project NHC “under one roof” that will help to structure and optimize work of Pillar within the frames of this large-scale project. The task of Schaller Kyncl Architekten Riga is to elaborate all necessary technical documents for the project, so that in 2015 first construction works are going to be started in the territory of NHC.

In our portfolio of reconstruction properties there are special and appreciated by our clients property projects, such as: «Elizabetes Park House», «Saules Rasa», «Pine Breeze», «Mārtiņa Nams 2», «Liesmas Apartment House», «Dārza Apartment House», «Lielezeres Apartment House» and others. Read more about Pillar and its properties on the website: www.pillar.lv.

Pillar Holding Company, KS, established in 2008, 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 about 750 properties worth approximately EUR 65 million. So far the company has invested the total of EUR 15 million in renovation of properties.

Ilmārs Jargans
Head of Public Relations Department
+371 6777 5296