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SRE: In the first half of 2022, 50 properties have been sold for 3.45 million euros, including 24 environmentally degrading buildings


In the first half of 2022, SJSC “State Real Estate” (SRE) achieved a turnover of 22.16 million euros and a net profit of 4.16 million euros. In the first half of the year, SRE has sold 50 properties for 3.45 million euros, including 24 environmentally degrading objects, informs Renārs Griškevičs, Chairman of the Board of SRE.

Compared to the first half of 2021, the number of properties sold at auctions increased by one transaction, while at the same time there were fewer large-scale transactions – in the first half of 2022, 50 properties were sold at auctions for 3.45 million euros, including 24 environmentally degrading buildings at 15 addresses. Last year, during this period, the capital company sold 49 properties for 4.83 million euros, nine of which contained 12 environmentally degrading buildings. The most significant sales transactions in the first half of 2022 were – Dzirnavu iela 113 (1.2 million euros), Kapseļu iela 8 (454,700 euros) and Ganību dambis 26 (909 thousand euros) through an open public auction. Now the above-mentioned properties are given the possibility of a new usage in the future, while the proceeds from the sale of the properties are used by SRE for the arrangement and development of the properties needed by the state.

In the first half of 2022, turnover of SRE reached 22.16 million euros, monthly EBITDA was 10.26 million euros, which is 4% or 0.92 million euros more than in 2021, the company's net profit reached 4.16 million euros. In the first half of 2022, compared to the same period last year, income from real estate rental increased by 0.54 million euros (reaching 11.57 million euros). Income from state real estate management and construction increased by 1.28 million euros (reaching 6.47 million euros). Income from the Company's real estate management and alienation of state real estate amounted to 4.12 million euros. 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.

“Despite the current challenges of the first half of the year, the capital company continues the development of the company and stable operation of the company. Along with ensuring continuous construction in all 23 projects of national importance and in addition to attracting funding, we are working on various projects of national importance to strengthen the national security infrastructure. We also continue to work on the development of the future office concept,” says R. Griškevičs.

From 2 May to 29 July 2022, SRE implemented a state administration co-working pilot project in the SRE activity-based office at Talejas iela 1, Riga. It provided support to public institutions that have started the process of changing the working environment or are still planning it. The purpose of the co-working pilot project is to give public sector employees the opportunity to get to know the advantages of a modern work environment in practice, in order to promote the introduction of offices that meet modern requirements in the state administration. Within the framework of the project almost 400 employees from 33 public sector institutions experienced working in an activity-based office space within a three-month period. SRE envisages the possibility of continuing the project in order to promote the creation of co-working spaces and activity-based offices in Riga and regions in the future.

SRE continues work on sustainable construction guidelines, where in addition to the existing requirements of laws and regulations, SRE will set sustainability requirements for the performers of works, the implementation of which will reduce the life cycle costs of the building and the negative impact on the environment. It is already planned to start the implementation of requirements in SRE procurements this year. Work has also begun on the development of building information modelling (BIM) requirements, which will provide more accurate and detailed information to industry representatives.

The most significant of the 46 development projects managed by SRE with a total project budget of 230 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, 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.