SJSC State Real Estate (SRE) continues to support and provide aid to customers by applying a rent reduction or exemption until the end of the emergency situation declared in the country. The term has been extended with reference to the amendments to the draft law on the management of the consequences of the spread of the Covid-19 infection reviewed and adopted at the cabinet meeting.
In accordance with the amendments to the Cabinet Regulation No. 453 on the application of the exemption or reduction of the rent for the property of a public person and a public-controlled capital company due to the spread of Covid-19, tenants of property owned by SRE may receive aid for the period from 11 October 2021 to 28 February 2022. Applications for aid for this period are accepted until 31 March.
The aid includes a reduction in rent in line with the reduction in turnover, but up to a maximum of 90%, while a rent exemption of 100% is granted when the leased object is not used at all and no contractual penalty or interest is charged in the event of a late payment. There is no discount for additional payments.
Lessees can submit an application for support if all the following criteria are met at the same time:
- Revenue from economic activity during the support period per month has decreased by at least 30% compared to the average revenue in July, August and September 2021 combined, and this decrease is due to restrictions on economic activity related to epidemiological security measures to control the spread of the Covid-19 infection. Associations and foundations are assessed for a reduction in their operating income;
- There is no tax debt administered by the State Revenue Service, which is more than 1000 euro, or, if the debt is higher, an extension of the payment term has been granted or an agreement on the voluntary payment of taxes has been entered into, or an agreement has been entered into;
- Insolvency proceedings have not been initiated;
- There have been no delays of three or more rent payments and other related payments or any other material outstanding contractual obligations to the lessor during the last year, or an agreed debt repayment schedule has been entered into with the lessor and settlements are being made in full;
- The lessee is not a legal person or association of persons registered offshore within the meaning of the Public Procurement Law or, if it is a legal person registered in Latvia, the owner or holder of at least 75% of its capital shares is not a legal person or association of persons registered offshore.
In order to receive support, a merchant must submit an electronic de minimis accounting form for other de minimis aid received electronically at the time of the submission of documents, or indicate the identification number of the applicant form created and approved in the de minimis accounting system (de minimis accounting form must be completed and must be submitted to the SRS electronic database EDS of the merchant – beneficiary).
To evaluate the receipt of support, tenants are invited to submit applications and confirmations for compliance with the above criteria by sending such to vni@vni.lv. You can find more information and documentation required to provide customer support in the SRE website.
Last year, in connection with the consequences of the spread of Covid-19, the support of SRE was provided to entrepreneurs in accordance with the regulation adopted by the Cabinet of Ministers No. 453, which was valid until 30 June 2021. Since March 12 of last year, SRE support has been provided in the amount of EUR 1,788,350 to 213 tenants. Among the most supported industries during the pandemic are the hospitality business, catering, beauty care, retail, and entertainment.
Adapting to the circumstances, SRE continues to successfully provide its operations, customer service and project implementation remotely. Clients are invited to use the electronic communication facilities provided for the submission of real estate management applications 24/7 – the application “VNĪ klientu atbalsts”, e-mail support@vni.lv or free phone 80002000. Documents can be submitted electronically or by postal services. The company's news and current information about the availability of services are available on the website www.vni.lv, as well as on social networks.
Last year, under the conditions of the pandemic, 17 nationally significant development projects with a total budget of 29.5 million euro were completed under the leadership of SRE. Under the conditions of the pandemic, in accordance with the precautionary and safety requirements, work on 54 different construction objects of national importance with a total project budget of 223 million euro continue under the management of SRE. SRE provides professional real estate management and administration for approximately 400 real estate properties with 1100 buildings of 1.02 million square metres and more than 3600 land properties with an area of 9.6 million square metres. The company is one of 23 Latvian companies that have received the highest platinum award as part of the Sustainability Index of the Institute of Corporate Responsibility and Sustainability, confirming the good governance and sustainability of its operations. SRE was founded in 1996, and is 100% owned by the Ministry of Finance of the Republic of Latvia.
