Latvenergo's most valuable auction of the decade: office and industrial building complex on Krustpils Street
The area around Krustpils Street can be called the “mecca“ of industrial production and business on the right bank of the Daugava. Due to its strategic location, entrepreneurs often choose this area for the development of their business, appreciating the developed road infrastructure - the proximity of viaducts and railways, as well as convenient access to major motorways. It is not for nothing that the area of Krustpils Street has been inhabited for a long time by such companies as “Rimi Ozols“, “Decco Centrs“, shopping centre “Akropole“, “Grindeks“, “Cenu klubs“, “SUIS“ and others.
In the period from November 1 to December 1, a new owner of the Latvenergo Group's property at Krustpils Street 15 will be sought at the auction, with the potential transaction becoming the most valuable auction in the Latvenergo Group in the last ten years (the starting price of the auction - EUR 3,720,000. *)
According to the new spatial plan of the city of Riga, the land unit owned by Krustpils Street 15 is located in the building area of industrial production companies, commercial activities and warehouses. It includes a complex of office and industrial buildings, offering 11 buildings and a land plot of 3.0316 ha - land (3.0316 ha), administrative or office building (3437.5 m²), production building (8533.0 m²), workshop building (272.9 m²), technical workshop with office (1153.7 m²), warehouse building (176.9 m²), forge (46.7 m²), guard building (8.1 m²), warehouse building (9.5 m², 18.7 m², 9.5 m² and 78.9 m²).
In the opinion of an independent and certified real estate valuation merchant, the property at Krustpils Street 15 is named as a commercially advantageous object - with an excellent location and positive prospects for the use of the object. For the new owner, it will be a great investment in real estate with a wide range of business development and use opportunities in the future. Although the operation of the complex buildings was started in 1970 - 1980s, they are in a satisfactory technical condition and have also undergone improvements. For example, with an investment of EUR 100 000, the internal electricity supply networks, including the transformer point included in the property, have been renovated. Looking to the future, there is a possibility to alienate the adjacent territory (Krustpils Street 15A), thus increasing its area, giving wider opportunities for territorial development plans, which will only increase the future value of the acquired property.
The potential of the property lies not only in its convenient accessibility, but also in its various uses, as both the existing premises and those that could be rebuilt can serve the implementation of a wide range of business plans. For example, the main uses are construction of office buildings, trade, services and production facilities, linear and service infrastructure of transport, construction of airports and ports, engineering infrastructure, construction of light industry and heavy industry and primary processing enterprises. The complex is also suitable for the needs of warehouses, waste management and recycling companies, energy supply companies and defense and security institutions.
The administrative building, production building, workshops, warehouses and other premises of the auctioned complex are currently leased (100% - the premises in the production building, but the rest of the buildings - 76%). In total, there are currently 20 tenants in the complex, with whom non-residential premises lease agreements have been concluded until, at the latest, 31 December 2023 (lease agreements are not registered in the Land Register). With one tenant a contract has been concluded until May 2027 (the contract is registered in the Land Register).
It should be mentioned that the rent in the complex was determined on the basis of the opinion of a certified appraiser, as a result of which the external rental income annually exceeds the direct maintenance costs of the property.
It is planned to open the auction with an ascending step on November 1 on the electronic auction portal of the Court Administration (www.izsoles.ta.gov.lv). The property with cadastral number 01001212449 at Krustpils Street 15, Riga, will be sold as a set of items with all accessories, setting the starting price of the auction at EUR 3,720,000.00.“ Auction time: November 1 at 13:00 - December 1 at 13:00.
You can find out more about the property complex at Krustpils Street 15 by contacting the representatives of Latvenergo: (+371) 2862 6308; [email protected].
About Latvenergo
Latvenergo is one of the leading and primarily selected suppliers of sustainable and high-quality energy supply in the Baltic markets. The Latvenergo Group strategy (2017 - 2022) is aimed at further strengthening the Latvenergo Group's position in the Baltics and possible development in the direction of the Nordic countries.. To achieve these goals the creation of new products and services, fostering the interaction between production and trade in line with energy sector trends, is essential. Latvenergo is expanding and reviewing its business boundaries, offering new approaches and services, as well as acquiring new markets.
*Corresponds to the market value determined by an independent certified real estate appraisal merchant.
