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In the nine months of 2022 the turnover of SJSC “State Real Estate” has increased by 13%


The turnover of SJSC “State Real Estate” (SRE) in the nine months of 2022 has reached 35.57 million euros, while the net profit is 3.3 million euros, informs Renārs Griškevičs, Chairman of the Board of SRE.

The turnover of 35.57 million euros achieved by SRE within the nine months of 2022 is 13% or 4.2 million euros greater than in the first three quarters of last year. Whereas the EBIDTA in the nine months of 2022 has reached 12.35 million euros, and the net profit – 3.33 million euros.

“We are actively solving this year's big challenges and steadily continuing to work in all important, strategic directions of operation for the company. We pay a great deal of attention to the continuity of work in large development projects, as well as improving the implementation of modern technologies, including BIM, and sustainability principles in construction. We also continue to implement practical activities to promote energy efficiency measures and modernise the working environment in public sector institutions,” emphasises Griškevičs.

In the nine months of 2022, income of SRE from real estate rental increased by 0.7 million euros to 17.4 million euros, compared to the corresponding period of the previous year. Income from state real estate management and construction increased in the nine months of this year; compared to the corresponding period of 2021, it increased by 4.3 million euros to 12.1 million euros. Whereas income from the expropriation of state real estate decreased by 0.7 million euros to 6.1 million euros, compared to the three quarters of last year. Overall, the company's operations in 2022 are carried out in accordance with the SRE medium-term operation strategy for 2018–2022 and operational plans.

The most significant transactions in the nine months of 2022 were sales of buildings at Dzirnavu iela 113 (1.2 million euros), Ganību dambis 26 (0.909 million euros) at open public auctions. In the public auction opened in the third quarter of the year, the Igate Palace complex was sold to SIA “Palleteries” for 915 thousand euros.

In total, in the nine months of 2022, 60 purchase contracts for the sale of 63 pieces of real estate have been concluded for the total amount of 3.56 million euros. Among them, 25 environmentally degrading objects were sold at 16 addresses. Last year, in the relevant time period, 74 purchase contracts were concluded for the sale of 76 real estates for the total amount of 5.397 million euros, including 24 environmentally degrading objects located at 17 addresses. In 2021, the biggest sales transactions were buildings at Raiņa bulvāris 27 (2.3 million euros) and Tērbatas iela 75 (1.205 million euros).

Increased customer activity is observed throughout the year in transactions involving the sale of state land plots. Among other things, this can be explained by the high inflation observed this year, due to which previously postponed investments were also made. Important transactions related to the purchase of state land are the early execution of the instalment purchase contract for the land at Andrejostas iela 17 concluded in May 2022 (2.9 million euros), as well as the sale of the land plot at Lokomotīves iela (47.7 thousand euros). SRE uses the proceeds from the sale of real estate in arranging and developing the properties necessary for the state.

In the third quarter of 2022, the shareholders' meeting decided to increase the share capital of JSC “State Real Estate” to 146,832,445 euros, while the company's equity capital on 30 September was 285.04 million euros.

The most significant of the 46 development projects managed by SRE with a total project budget of 330 million euros are the construction of the infrastructure of the external land border of the Republic of Latvia and Belarus in priority sections, reconstruction of the New Riga Theatre complex, restoration and reconstruction of Riga Castle convent (kastel), increasing the energy efficiency of the Latvian Puppet Theatre building and Valmiera Drama Theatre building, modernisation of the Terehova border crossing point, development of the reconstruction and renovation project of the Great Guild Concert Hall, adaptation of the building at Mārstaļu iela 6 to house the Museum of Music and Writing, establishment of the Performing Arts Decoration Workshops and Rehearsal Hall complex at Meirānu iela 2, renovation of Daile Theatre forecourt and restoration of the cover of the Latvian Riflemen's Square.