SJSC “State Real Estate” (SRE) announces an auction for the real property located in the outer centre of Riga, Brīvības street 188. According to Andris Vārna, SRE management board member, the auction will take place from 7 June to 8 July, and a viewing of the site can be applied for until 27 June.
This property is a great opportunity for those who are ready to invest in if future development,’ Andris Vārna said. ‘Although global economic uncertainty may affect the real estate market, the Q1 2024 Colliers Baltic real estate market report offers a moderately positive outlook for the Baltic investment market. The interest of local investors is a reflection of that trend. Furthermore, although the long-awaited European Central Bank interest rate cut was less radical than expected, the expected financing conditions are thought to have the potential to boost investment activity throughout the year.’
The property offered for auction consists of a large plot of land with a total area of 5408 square metres and a number of buildings on it. It includes a 2-floor shop building constructed in 1937, with a total area of 1234.1 square metres. Two warehouses, built in 1940 and 1910, are one and two-floor buildings with a total area of 642.6 and 4164.1 square metres. The buildings are equipped with all the necessary centralised-system utilities. The property also has two open areas with asphalt paving, built in 1980, for additional land use opportunities.
The property is located in the block between Brīvības, Pērnavas, and Kr. Barona streets, which successfully combines commercial and residential buildings, as well various other types of property. The neighbourhood has high vehicle and pedestrian traffic, creating excellent opportunities for commercial activity.
The property currently has several leases with different tenants, providing a stable income. The occupancy of the two buildings is about 90–95%, while one warehouse building does not yet have a tenant.
The initial price is set at EUR 1,700,000, with a bidding increment of EUR 10,000. For more information about the auction and the property, visit the official auction website at izsoles.ta.gov.lv.
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 administration for 419 building and structure properties, comprising 1049 buildings with a total area of 0.98 million square metres, as well as land beneath structures with a total area of 585 hectares, and 3385 land properties with a total area of 937 hectares. 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.
