AprÝs ski on the Baltic

Latvia is the next country in our CEE Top Projects series of articles. It has an estimated population of 2.29 mln and an area of 64,589 sq km, a little smaller than Ireland. But the statistic that leaps off the page at you is the GDP growth – a whopping 10.85 pct per annum. A look at some of the projects which have contributed to this growth rate

Starting with the logistics sector, Dominante Park lies in Kekava (42 km away from Riga, which when renovation work is completed will offer 110,000 sqm of space to rent for both heavy and light industrial use.

As for office projects, the most significant one coming into commission this year is the Rietumu Capital Centre on Vesetas St in the eastern part of Riga city. This complex is being marketed as the first class A+++ office building in Latvia, and is to be the new headquarters of the developer of the building, Rietumu Banka commercial bank, which is to occupy 70 pct of the property, while the remaining office space will be leased to other companies operating in high added value products industries.  The centre will provide 16,520 sqm of office space in 3 blocks of differing heights (11-, 14- and 20-storeys) and a 5-level car park for 290 vehicles.  The building was designed with a ‘glass double-skin’ to be the latest in air-conditioning technology and energy-saving construction. This entails a closed outer facade reflecting away the solar radiation, with an inner facade which can be freely opened by the tenants. Rietumu Capital Centre is due to come into use in September this year. The offices can be leased for a 3–5 year period with rents set at EUR 22 per sqm net plus a EUR 2 per sqm net perating fee. A parking space will cost EUR 75 monthly.

On the dock of the bay

 Taking a look at an already completed project, Marina Business Center has a much less desirable location than the Rietumu Capital Centre, on Duntes St near Riga sea port. Nevertheless, the developer Unimars has fully leased the building since its completion in December 2005. The developer decided to go ahead with this project after the success of their first building in the district, the Unimars Marine Center. The 8,000 sqm class B+ Marina Business Center has added to what is now a thriving business district. The first floor contains conference facilities, a restaurant and a swimming pool, with offices of between 50 sqm and 1,500 sqm on the 5 floors above. There is also an underground car park for 40 vehicles. Rents range between EUR 12 and EUR 15 per sqm net, with an additional EUR 2 per sqm net maintenance fee.

Also in Riga, there are 2 recent retail projects which catch the eye. One is the extension of Galerija Centrs – a historic building in the old town of the city, which has operated as a shopping centre since 1938. It is the most famous and popular shopping centre in Riga, currently visited by 8 mln customers every year. At the end of August last year, the retail area of the building was increased from 15,000 sqm to 32,000 sqm and it now includes a glass-covered arcade, which was formerly a section of the street. The investment costs come to EUR 30 mln. Galerija Centrs forms part of Linstow’s retail portfolio, which includes 4 other centres in Riga.

New Spice

 Spice is a larger, modern shopping mall on Ulmana Avenue on the way to the airport. It opened in October 2001, with 80 retailers offering their wares to customers.  After several expansions and additions, the centre is now more than 50,000 sqm in size and is home to more than 140 retailers.  A further 28,000 sqm is being added in the third stage of this development, which is expected to be finished in the autumn. The developer and owner of Spice is Merko, which will have invested around EUR 47 mln in the centre by the end of the third stage.

Finally, Latvia is not the first country that springs to mind when we think about skiing, but nevertheless it is to be the location of a massive indoor skiing centre development: the Dune Project in the coastal resort of Jurmala. As well as a skiing complex, in its 5 sections, this EUR 250 mln investment from Nemo Real will also contain a 4-star hotel with conference centre, a 5-star hotel and a spa, hotel apartments, and a multi-functional leisure park. It is likely to be completed in 2011 or 2012, and is expected to attract 500,000 mln visitors every year.