SJSC “State Real Estate” (SRE) announces an auction for the real estate property at 7 Marijas Street – Moscow Culture and Business Centre, also known as the “Moscow House”. The starting price of the auction is EUR 3.57 million, informs SRE Board Member Andris Vārna.
"From the point of view of potential investors, this property offers ample development opportunities, as it is located in one of Riga's most central and prestigious locations with well-developed social and transport infrastructure. The property has great potential for both business and cultural events, and its future owner will have the opportunity to create new added value to this historic site, while investing in the development of Riga," says A. Vārna. "However, it has to be admitted that this auction is not an easy task, given the historical background and the specific layout of the building, which may require additional investment and time to find a suitable buyer. The proceeds from the sale will go to support the Ukrainian people, which gives this process a special meaning and moral value."
The Moscow Culture and Business Centre was built in 1976 and renovated in 2002. The five-storey building, which also includes one underground floor, covers a total area of 4482.4 m². The building is known for its unique architecture and has been a venue for cultural events, previously hosting theatre performances, film screenings and other cultural events.
The property is located in the city centre of Riga, in a block formed by Marijas, Alfrēda Kalniņa, Kr.Barona and Merķeļa streets. The neighbourhood is well developed and prestigious, with heavy pedestrian and traffic flows providing easy access to the property. The Moscow House is fully equipped with all necessary utilities, including electricity, water supply, sewerage and central heating. The land area of the property is 966 m².
The proceeds from the auction will be transferred to the state budget and subsequently used to support Ukrainian civilians, according to a law adopted by the Saeima. This decision is a symbol of Latvia's solidarity with Ukraine and its people who are fighting for their freedom and independence.
The auction is open to anyone interested in the property, subject to the auction rules. The auction for the property at Marijas Street 7 will take place from 20 August to 19 September, and the deadline for applications is 9 September. The starting amount of the property auction is set at 3.57 million euros with a bid increment of 10 000 euros. For more information about the auction and the property, visit the official auction website at izsoles.ta.gov.lv.
On 11 January this year, the Latvian Saeima passed a law transferring Moscow House to state ownership on the grounds of national security. The Saeima acknowledged that since its establishment, the Moscow House has been used as an instrument of the Russian Federation's foreign policy, which threatens Latvia's security and democratic values. The adoption of the law is a demonstration of Latvia's determination to protect its sovereignty and to prevent measures against the democratic state order.
History of the Building
The Moscow House project was initiated by Moscow Mayor Yuri Luzhkov and the Ambassador of the Russian Federation to Latvia, Alexander Udaltsov. On 13 November 2001, the Moscow government decided to establish a cultural centre in the Latvian capital. At the beginning of 2002, the reconstruction of the former Railway House, which Moscow acquired from SJSC Latvian Railway in a property swap, began. The opening took place on 28 May 2004 in the presence of Riga Mayor Gundars Bojars and Moscow Mayor Yuri Luzhkov.
About SRE
According to the strategy of the company, SRE maintains long-term ownership of the properties necessary for public administration, while the properties that are not necessary for the public institutions in the long run and that generate losses to the state are sold via public auctions or transferred to other owners in accordance with the procedures established by law. Properties in the main portfolio that generate losses and cannot be leased to commercial tenants are put up for sale, making it possible to find a new use for them.
SRE provides professional real estate management and maintenance for 427 building and structure properties, comprising 1089 buildings with a total area of 0.996 million m2, as well as land beneath structures with a total area of 591 ha, and 3261 land properties with a total area of 895 ha. SRE is one of 17 Latvian companies that in 2023 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. The company was founded in 1996 and the Ministry of Finance is its sole shareholder.
