Riga, Latvia, 2013-10-15 08:02 CEST (GLOBE NEWSWIRE) -- In Q3 2013, the upswing in real estate market was continued. Alongside the overall market growth, the sales of real estate development and trading group Pillar significantly increased as well. The company sold properties for the total amount of 24.8 million euro over nine months. Whereas during the whole 2012, Pillar sold properties for 15.7 million euro.
Pillar supervises more than 1400 properties worth about 84.9 million euro. So far the company has invested the total of 12.9 million euro in renovation of properties.
In total, there were 370 property sale transactions made this year (during the whole 2012 – 254 transactions). The customers' activity has grown in respect of all residential property segments – premium class, new projects, and existing homes. Among sold properties, 68 were the apartments in new and renovated projects, including 13 premium class apartments in Elizabetes Park House project. There were 298 apartments in existing homes sold, as well as 2 commercial property sale transactions made.
Pillar Chief Executive Officer Ieva Valtere noted, “The third quarter of this year confirmed our previous forecast about market upswing following summer months. The market growth year-on-year is estimated to be between 16% and 18%. This trend might also persist in the coming years. The most essential factors affecting market growth will be the solutions planned by Latvian government with regard to socially important areas: employment, demographic situation, migration, overall sustainable development of the state economy.”
As we informed earlier, at the beginning of the year Pillar started a special property renovation programme, under which we completely renovated part of the residential properties included in the company’s portfolio. Under the programme, apartments in prestigious buildings located in Riga centre and nearby are renovated, alongside several newly built private houses in Riga environs. In the third quarter, Pillar completed and sold several properties under this programme. There were three properties sold for the total amount of 410 875 euro. In general, the programme is considered successful, but due to unclear situation with the future of the state programme of granting residence permits, which considerably complicates planning, Pillar renovation programme will be decreased. Earlier, the total investments in the programme in 2013–2014 were planned to amount at least to 2.5 million euro.
Active development of the project important both for Pillar and the whole ABLV Group – financial and business centre New Hanza City (NHC) – is continued. As it was announced, at the beginning of the year construction was begun at the project territory in Riga, at 28a Pulkveža Brieža Street. The works are performed according to the schedule, and therefore Pillar will be able to move to new office building till the end of the year. Till now, there has been more than 20 million lats invested in the NHC project.
Considering customer demand, in July Pillar started to sell apartments in new modern apartment block Dārza Apartment House, located at 32 Dārza Street in Riga. The building consists of two parts (5 and 7 floors high) and has two separate entrances. There are 54 apartments (from 1 to 5 rooms) in the house, their area being from 43 sq m to 211 sq m. The apartments have balconies, but apartments at the upper floors – wide terraces. The apartments are offered for sale with full high-quality interior finish. The sale price is from EUR 1150/sq m to EUR 1500/sq m. All finishing works in Dārza Apartment House are planned to be completed till the end of this year.
The construction and finishing works in apartment block Lielezeres Apartment House are also nearing completion. The building is located in Riga, in Dzirciems, at 10 Lielezeres Street. This project was taken over by Pillar in November 2010. Until then, just basement floor of the building had been constructed. This building will be commissioned till the end of this year as well.
Pillar real estate development portfolio includes such completed projects as Elizabetes Park House, Saules Rasa, Pine Breeze, Mārtiņa Nams 2, Liesmas Apartment House, etc. Our development plans also include renovation of premium class apartment block Miera Park House in Riga, at Miera Street, as well as several individual projects. More information about Pillar and offered properties can be found on our home page www.pillar.lv.
Pillar Holding Company, KS, is owned by the largest private bank in Latvia – ABLV Bank, AS, and it includes ABLV Group companies that operate in the field of real estate development, management, and trade. Pillar holds one of the largest real estate portfolios in Latvia, which comprises apartment blocks, apartments, private houses, land, and commercial properties.
Pillar Management, SIA
Tel.: +371 6777 5432