H1 2016 for Pillar: Transaction Amount Reaches 6.5 M Euros, Construction Works in New Hanza City Launched

Riga, Latvia, July 27, 2016, 09:10 / Investments

H1 2016 for Pillar was mainly marked by preparation for construction works in the territory of New Hanza City financial and recreation centre (NHC) located in the modern centre of Riga, namely, Skanste area, as well as by sales in the real estate portfolio.

In the first six months of the year Pillar Group concluded 108 transactions regarding different properties for the total amount of 6.5 million euros. The largest part of the transactions still takes place in the uniform apartment segment, where 63 properties were sold: 48 apartments in Riga and 15 apartments outside the capital. This year, already 18 private houses, 15 land plots and 2 commercial objects were sold. The outstanding results in sales of private houses and land plots were achieved following special offers announced in the second quarter of the year.

In total, 9 apartments were sold in new projects. Currently, in the Pillar portfolio there remain the last apartments in the following projects: Pine Breeze and Liesmas Apartment House, as well as 27 apartments in Miera Park House premium-class apartment block. Miera Park House was put in commission at the end of 2015, and the project was recognized as the best new residential building at the Latvian Construction Industry Annual Awards 2015.

We have already announced that Pillar conducted preparation works in June in order to start the 1st stage of NHC infrastructure construction. It will include building streets and laying the necessary utility lines, including the water supply system, sewage system, heat supply system and electricity supply system. The works are to be completed by spring 2017. The total expenses for the 1st stage of the infrastructure project are planned in the amount of 9.28 million euros. The general contractor in the project is Pillar Contractor, SIA.

In the first half of the year, the design of the Latvian Museum of Contemporary Art anticipated in NHC was chosen. The Latvian Museum of Contemporary Art Foundation in collaboration with London-based Malcolm Reading Consultants announced the museum design competition in which the common project by Adjaye Associates (Great Britain) and AB3D (Latvia) was considered as the most appropriate, taking into account the concept of the future museum.

At the end of June, another architecture competition was held; this time it was aimed at finding the best suitable design solution for the reconstruction of the former Riga goods railway station storage unit. It is planned to turn this building, which will be the only historical building to remain in the territory of NHC, into a multifunctional culture centre. The idea of ‘Sudraba arhitektūra’ architect bureau was announced the best.

Pillar group, established in 2008, is owned by ABLV Bank, AS, the largest private bank in Latvia, and 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 400 properties worth approximately EUR 50 million. So far, the company has invested a total of EUR 20 million in renovation of properties. Since 2013, Pillar is the major sponsor of the Annual Award in Latvian Architecture organized by the Latvian Association of Architects.