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Expropriation of the Igate Palace complex for 915 thousand euros has been completed


On 5 September 2022, the sales transaction of the Igate Palace complex was finalised. SIA “Palleteries” acquired the right to purchase the Palace complex for 915,000 euros via an open electronic auction, says Andris Vārna, Member of the Board of SJSC “State Real Estate”.

On 25 August 2022, an open electronic auction of the Igate Palace complex, in Limbaži Municipality, was concluded. One applicant applied for the auction – the legal entity SIA “Palleteries”. The company's sole owner and true beneficiary is Latvian businessman Edijs Ošs. The company operates in the manufacturing and export sector.

“After the news about the sale of the Palace was made public, I had the idea to also put my mark on the history of Latvia by purchasing Igate Palace, which is also a kind of patronage. Further, management of the Palace will be handed over to my daughter Sintija Oša and her team. With two families – Oši and Lāči, coming together, the property will be managed and its historical heritage will be preserved in combination with a new, modern development model. Here, the new generation will have opportunities to express themselves creatively, as well as to accumulate business knowledge in the learning process. The Palace will be accessible to everyone and focused on business. Work will be continued in the Igate Mill pub, which is popular among guests, the sauna lounge house will be renovated, and all efforts, faith and hope will be put into already opening the doors of the Palace to ring in the New Year – 2023,” says Edijs Ošs.

According to the strategy of the capital company, SRE maintains properties necessary for public administration in the long term, while properties that are not necessary for public institutions in the long term and cause losses to the state are sold through public auctions in accordance with the law, or the transfer of assets to other owners is considered. The properties being part of the fixed capital, which cause losses to the capital company and which cannot be rented out to commercial tenants, are directed for expropriation, thus giving them the opportunity to have a new use. The funds obtained as a result of the expropriation of Igate Palace will be used for the restoration and management of other properties owned by the state and the capital company.

“The purpose of SRE is to manage the state's real estate according to the highest industry standard, to maintain and increase the historical values of the properties under our management. We are pleased that the Palace and its complex will get a new life. We wish for the new owner of the Palace to fulfil the development plans of the complex so that the Palace can be opened to the public again soon,” says A. Vārna.

From the end of 2015 to the autumn of 2019, the Palace complex was leased to SIA “Domaines et Chateaux” and was used for the provision of hospitality services. After the lease rights were terminated, SRE continued to preserve and maintain the real estate, which cost the state 129,000 euros per year. At the same time, a new tenant was sought for the property. In order not to leave the property empty, in 2020 SRE decided to bring life to the pub, separating the cafe from the rest of the property, which made it possible to lease these premises in accordance with the law by public auction, thus reducing the losses to the state. SRE ensured the maintenance of the Palace and its territory – cleaning the territory, mowing the grass, restoration works of the water bodies in the territory of the complex – the pond, the water level regulating equipment of the pond. Security and heating services were provided for the Palace building.

Out of the 1,200 manors and castles in Latvia, in addition to the Igate Palace complex, there are two more under the direct management of SRE – Riga Castle, which has been used for public functions for a long time and receives state support, and the Mežotne Palace complex, for which SRE ensures the preservation of all historical values. Since May 2021, SRE, together with industry experts from the National Cultural Heritage Administration and the Ministry of Culture, has been working on the development of unified cultural heritage criteria for immovable properties; the informative report on the criteria developed by the joint working group will be forwarded to the Cabinet of Ministers for consideration in the near future (according to data of, out of 362 properties with the buildings under the management of SRE, cultural heritage status has been allocated to 86 properties).