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In the 1st half of 2021, the turnover of SRE has increased by 12.7% due to revenues from expropriation


The net turnover of SJSC State Real Estate (SRE) in the first six months of 2021 reached 21.24 million euros, which is 12.7% or 2.39 million more than in the respective period in 2020. EBITDA and net profit indicators also increased significantly in the first six months of 2021 - EBITDA increased by 2.5 million euros, providing a net profit of 4.2 million euros as opposed to a net profit of 1.91 million euros in the first six months of 2020, mainly due to the income from expropriation of real estate not needed for the state administration, points out Renārs Griškevičs, Chairman of the Board of SRE.

Compared to 2020, in the 1st half of this year, almost EUR 3.2 million more revenue was generated from expropriation. In the first half of 2021, 49 purchase agreements for 4.82 million euros were concluded, enabling the state administration to develop unnecessary properties, including the sales of two significant objects - the historic building on the canal bank at 27 Raina Boulevard and the administrative building at 75 Tērbatas, where the Literature and Music Museum was formerly situated and the premises were vacated after the museum administration and collections were relocated to the museum storage facility that was built in Pārdaugava, 8 Pulka Street, under the supervision of SRE administration. For comparison, in the first half of last year, 51 purchase agreements were concluded for the total amount of 1.63 million euros, selling a number of non-liquid objects in various corners of Latvia, giving them the opportunity to find a new purpose. Proceeds from the sale of properties are used to bring order into property needed by the state.

“The development of the company this year is taking place in accordance with that which was planned, in compliance with the medium-term strategy of SRE from 2018–2022 and the action plan for 2021. This year, we are honoured to be among those Latvian companies that received the highest platinum award in the Sustainability Index of the Institute of Corporate Responsibility and Sustainability, proving the sustainability of our operations and good corporate responsibility. The keys to the renovated Museum of the Occupation of Latvia have been handed over for setting up the museum's new exposition. We continue to work on the renovation of buildings of national importance, which includes us starting construction works in the autumn for the improvement of the Daile Theatre forecourt, Puppet and Valmiera theatres and the development of creative quarters in 3 neighbourhoods of Riga,” says Renārs Griškevičs.

Under the conditions of the pandemic, in accordance with the precautionary and safety requirements, work at 43 national construction sites with a total project budget of 156 million euros continues under the management of SRE. SRE continues to implement BIM or building information modelling requirements in new public procurements. In 2021, SRE is already implementing 14 projects featuring BIM components, including the reconstruction of the Riga Castle fortress, the historic building of the New Riga Theatre, development of the Large Guild renovation project, renovation of the historic building in Ventspils at 2 Kuldīgas Street and its adaptation for public and municipal use, and upgrading of the Latvia-Belarus border crossing point “Silene–Pāternieki”, among other projects.

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 its sole (100%) shareholder is the Ministry of Finance of the Republic of Latvia.