On 24 January 2023 the Cabinet of Ministers approved the advancement of the immovable property “Īle sanatorium”, Īle Parish, Dobele Municipality, for alienation. The property, which has a total area of 23 hectares, also includes 14.4 hectares of forest land and 22 buildings. The property is not needed for the exercise of public administration functions and its maintenance has caused the State a loss of around EUR 19.5 thousand over the past three years. The starting price of the auction will be determined by the end of February and the auction is planned to be announced in March this year, reveals SRE Board Member Andris Vārna.
Real estate “Ile sanatorium” from 2007 to 30 May 2014 had been managed by the Ministry of Welfare. The property was used for a long time by the State Social Care Centre “Ile”, an institution subordinate to the Ministry, providing social rehabilitation services to people with severe mental disorders. The property came under the management of SRE on 30 May 2014, when the Ministry of Welfare transferred it to the Ministry of Finance, as it was no longer used for the functions of a Care Centre. When SRE took over the real estate under its management, it found that the composition of the real estate needed to be sorted out, as it also included forest land, thus it could not be promoted for sale due to the restrictions set out in the Forest Law.
After the takeover, a long-term tenant was sought, with a maximum lease term of 30 years and an obligation to make capital investments. However, no tenant was found for the property. The starting price for the disposal of the property will be set by the end of February and the auction will be organized in March.
“The main activities of SRE as a state joint stock company are real estate management, development management and performance of functions delegated by the state. By ensuring sustainable management of our properties and efficient use of public funds, we, as a public corporation, are also responsible for the preservation and reproduction of the cultural and historical assets entrusted to us. Putting the property in the hands of private investors, while promoting new opportunities for development, is one of the solutions for sustainable management of such properties,” says A. Vārna.
The real estate includes cultural monuments of national and local significance, the management of which will continue to be ensured by SRE until the successful conclusion of the auction. The capital company also manages the property in accordance with the binding regulations of the Dobele Municipality, carrying out necessary repairs and dismantling dangerous structures degrading the environment. Since 2020, the maintenance of the property has caused the state a loss of approximately EUR 19.5 thousand.
In 2021 SRE contacted the Dobele Municipality with a request to assess the possibility of separating the forest land from the aforementioned property, but taking into account its functional necessity for the maintenance of cultural and historical monuments, the possibility of separating the forest land from the rest of the real estate was rejected. At the same time, in May 2021, amendments to the Forest Law came into force, which allow SRE to alienate state-owned properties, which also include state forest land that is not necessary for the implementation of state administration functions, if the criteria set out in the Forest Law are met.
Of the 3 441 land properties with a total area of 892 ha currently under the management of SRE, 40 properties comprise state forest land. Of these, 36 are currently not used for the implementation of state administration functions and could not previously be put up for auction due to restrictions under the Forest Law.
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