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The turnover of SRE in 9 months of 2021 has increased by 11%, while net profit - 2.5 times


The net turnover of SJSC State Real Estate (SRE) in the first nine months of 2021 is 31.36 million euros, which is 11.3% or 3.18 million more than in the first nine months of 2020, while the net profit of the capital company has increased 2.5 times, reaching 5.7 million euros compared to 2.21 million euros last year, mainly due to the revenue from public function by selling the real estate not needed by the state. The received income will be used for the development of objects important to the state, informs Renārs Griškevičs, Chairman of the Board of SRE.

In the first nine months of this year, 74 state real estate purchase agreements were concluded for a total amount of 5.39 million euros, last year - 66 purchase agreements for a total amount of 2.679 million euros This year, the largest objects sold by SRE are the historical building at Raiņa bulvāris 27, in the centre of Riga, on the canal bank (2.3 million euros) and the former building of the Literature and Music Museum at Tērbatas iela 75, in Riga (1.2 million euros), where administrative premises and a reading room were located. The building was released in 2020, when the museum administration and collections moved to the museum storage at Pulka iela 8, Riga.

Overall the operation of SRE in 2021 is carried out in accordance with the SRE medium-term operation strategy for 2018–2022 and operational plan of SRE for 2021. The volume of construction carried out under the management of the capital company in the first nine months of this year has increased by 67% compared to 2020, which is related to the life cycle of real estate development projects. “Several SRE objects are currently in an active construction phase - the construction of the New Riga Theatre at Lāčplēša iela 25 has reached the highest point of the roof, the restoration of Riga Castle Castel for the needs of the National History Museum of Latvia is actively underway, and the Museum of the Occupation of Latvia complex was commissioned in August. We have recently completed the renovation of facades of two historic buildings on Brīvības iela - the Ministry of Health and Sakta House. We are highly assessed as experts - the government has recently entrusted us with the renovation of the historic Saeima building, as well as the construction of the infrastructure of the external land border,” R. Griškevičs points out.

Under the leadership of the capital company, building energy efficiency projects of the Latvian State Historical Archive building at Skandu iela 14, Riga, Valmiera Drama Theatre building at Lāčplēša iela 4, Valmiera and the Latvian Puppet Theatre building at K. Barona iela 16/18, Riga, are continuing. The arrangement of the territory belonging to Riga City Council next to the renovated Museum of the Occupation of Latvia has started, which is one of the first cases where the state cooperates with the local government for a common goal. In general, in accordance with the precautionary and safety requirements, work at 54 different construction sites of national importance is currently underway with a total project budget of more than 193 million euros, including 18.5 million invested in the modernisation of the Latvian-Russian and Latvian-Belarusian borders.

"The rapid changes experienced in the construction industry this year, which are mainly related to external factors - the increase in the prices of energy resources and construction materials, highlight the need to cooperate and jointly seek solutions at the industry level. The goals of SRE are and always have been construction carried out in time, budget and quality. As customers, we are ready to actively participate so that the project implementation deadlines do not suffer and a legal mechanism is found regarding the rapid changes in construction costs,” R. Griškevičs reveals.

This year, the SRE team in cooperation with construction industry experts has started work on standard construction supervision requirements - common construction supervision guidelines for the entire industry, which will ensure the protection of customers' interests, as well as create a common understanding of customers about quality construction supervision services, control of contract execution and actions of customers in the case of violations. The guidelines are planned to be published and submitted to the industry for evaluation and application in 2022.

SRE is one of the largest capital companies in the Republic of Latvia, which manages, administers and develops real estate, as well as provides state institutions with the premises necessary for the performance of public functions.

Capital company provides professional real estate management and administration for approximately 400 real estate properties with 1100 buildings of 1.02 million square metres and more than 3600 land properties with an area of 9.6 million square metres. VNĪ 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. The company was founded in 1996, 100% owned by the Ministry of Finance of the Republic of Latvia.