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International Internet Magazine. Baltic States news & analytics Monday, 10.08.2020, 19:16

New Hanza Capital starts construction of logistics park in Riga worth EUR 18.3 mln

BC, Riga, 08.07.2020.Print version
New Hanza Capital, the commercial property arm of Latvia’s ABLV Bank, which is currently in the process of liquidation, has started constriction of an A-class warehouse and logistics park in Riga at 462 Maskavas Street, LETA was told at the company.

Investing at least EUR 18.3 mln in the project, New Hanza Capital will develop a logistics and warehouse park named A6. 

On Wednesday, a capsule was ceremoniously laid in the logistics park's foundations.

There are currently several warehouses, most of them built about a decade ago, on the land plot owned by New Hanza Capital at Maskavas Street. After completion of the construction works, the total space of the buildings will exceed 50,000 m2, making the new logistics park one of the biggest in Riga.

“Construction is one of the essential sectors, which can help recover the economy after the downturn. It was in the midst of the Covid-19 crisis that we made the decision to invest,” said New Hanza Capital board chairman Edgars Miluns.

There will be about 20 contractors engaged in building the logistics park at Maskavas Street, while approximately 180 people will be hired for construction works and other jobs on the site. The general contractor shall be New Hanza Capital, while design works will be done by Pillar Architekten.

The project is scheduled for completion by July 31, 2021. 

The developer also expects to receive a BREEAM certificate for the new buildings, proving their high quality, energy efficiency and compliance with the world standards. 

“When we started planning and designing the buildings, we paid much attention to efficiency and energy efficiency. In cooperation with experts in warehouse storage systems, we designed an unusual step of columns in the buildings, which ensures more efficient placement of shelves, offering more storage capacity in less storage space. We are glad that these modern spaces will be available also to small businesses, because our leasable areas start from 800 m2,” said New Hanza Capital board member Peteris Gulans.

As reported, at the beginning of July, shareholders of New Hanza Capital decided to change the company's name to Pillar Capital. 

New Hanza Capital is a company founded in 2006. The objectives of its operation include investing own and third party funds in commercial real estate objects to achieve sustainable increase in income from renting the premises and enlarging of the value of properties.

At the end of 2019, New Hanza Capital joined Pillar Group.

New Hanza Capital generated EUR 151,083 in unaudited 2019 profit, which is 33 times less than a year before, while New Hanza Capital Group closed 2019 with EUR 4.204 mln in profit, which is 2.5 times more than in 2018.

The beneficial owners in the company are ABLV Bank's shareholders Ernests Bernis and Olegs Fils.

New Hanza Capital bonds are listed on Nasdaq Riga Bond List.

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