SJSC "State Real Estate Ownership" (SRE) has started modernisation of the auction process of lease rights by introducing an electronic lease auction platform, informs SRE Board Member Andris Vārna.
Since last year, the laws and regulations allow to organise lease auctions electronically, therefore, on the initiative of the Judicial Administration, jointly with the participation of SRE, an electronic lease auction platform was established on the auction site izsoles.ta.gov.lv. Until now, lease auctions for public properties were conducted by SRE in a traditional manner – applications were submitted in person or by post in paper format and the lease auction process was conducted in writing or orally in face-to-face auctions.
"Electronic auctions are a more efficient and streamlined way of auctioning and managing lease rights. Our aim is to modernise and make the process more transparent, with better stakeholder engagement. After a successful first auction on the electronic auction platform, we can see that it is working to its target. From the first experience we have learnt what needs to be adjusted in order to make the process more convenient and transparent for all parties and we will continue to work in this direction with the intention to introduce electronic auctions as a standard practice in the field of auctions of lease rights of SRE," points out A. Vārna.
The digitalisation of lease auctions makes the process much more accessible and convenient for potential lessees, who can participate remotely. This in turn leads to a higher number of interested parties, which can have a positive impact on the rental price.
In addition, electronic lease auctions are more efficient and cost-effective, as they reduce the administrative costs associated with face-to-face auctions, thus streamlining the real estate transaction process and promoting a transparent and efficient use of resources.
Andris Munda, the Director of the Court Administration: “The Judicial Administration is continuously developing efficient and quality services that are easily accessible to the public. One of our areas of focus is the introduction and development of digital solutions. As the auctions have so far been mainly oral or written, we wanted to expand and develop the range of services to meet today's requirements. The auction platform has been welcomed by our clients and on their initiative, in cooperation with SJSC “State Real Estate”, it has been successfully implemented."
The first object in the electronic auction was a part of a plot of land for the establishment of electric car charging points in Ventspils, Jūras Street 34. Three bidders took part in the process and the lease object was successfully auctioned. The auction ended on 8 May, with an initial rent of EUR 60 per month, but the bidding increased to EUR 104 per month.
SRE is currently gradually moving towards the use of an electronic auction site for all lease auctions, introducing modern solutions that facilitate the process both in the application and participation phases. This approach not only ensures speed and efficiency, but also increases transparency and credibility, promoting fair competition and better results.
About SRE
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 3,385 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.
