Andris Vārna, the Member of the Management Board of SJSC "State Real Estate" (SRE), informs that the first auction for the Moscow Culture and Business Centre at 7 Marijas Street in Riga, more commonly known as Moscow House, failed to attract the interest of potential investors. Therefore, SRE plans to reduce the starting price by 20% in order to encourage more investors and ensure a successful auction. A decision on the price reduction is expected no earlier than 24 September, followed by a new auction on 1 October.
Andris Vārna, the Member of the Management Board informs: "Despite the great work done by SRE in reaching out to potential investors and real estate intermediaries, the current auction price is not attractive enough for market participants. The specific use of the property which is oriented towards cultural and event functions, does not meet the current demand, so potentially the next owner of the building, with additional investment in the building, should adapt it to a function that could better meet the requirements of both the local and international market."
Built in 1976 and renovated in 2002, Moscow House is a five-storey building with one underground floor and a total floor area of 4482.4 m². The building is known for its unique architecture and it has served as a venue for various cultural and business events, including theatre performances and cinema screenings. The location of the building in the centre of Riga provides easy access for both pedestrians and vehicles, as it is surrounded by the main city streets - Marijas, Alfrēda Kalniņa, Kr.Barona and Merķeļa Streets.
As previously reported, the proceeds from the sale of the property will go to support Ukrainian society. In accordance with the law adopted by the Saeima of Latvia, the funds will be used to help civilians in Ukraine, demonstrating the solidarity and support of the Latvian state in this difficult time.
Potential investors will be invited to participate in a new auction, which could start on 1 October following the decision to reduce the price. For more information on the auction conditions and property specifications, interested parties can 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 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.
