Banks, Latvia, Real Estate

Estonian investment fund EfTEN Capital head in Latvia, Viktors Savins told that he did not know what ABLV Bank was planning to do with the project, but the area had very good prospects. This means that the project will be implemented, in one form or another.

When asked whether there could be buyers for New Hanza at the moment, Savins said this was a very large project, and investors on the Baltic market might be short of funds to buy such a project.

"I would rather say that the project could be sold in parts," said Savins. "Nevertheless, the project is located in the capital, in a very good location, infrastructure is already in place, therefore investors will be interested in the project," he believes.

Factors that may affect the project, besides liquidation of ABLV Bank, include the overall economic and market development, and increasing construction costs.

Real estate consulting company Colliers International head in Latvia Deniss Kairans also told LETA that New Hanza was a project with a great concept and in an excellent location, therefore development of the project would definitely continue.

"Right now we don't have full information about ABLV Bank's self-liquidation but, generally speaking, investors are very interested in development projects, and this particular project is in the right place, good for construction of office buildings, apartment buildings, hotels and recreational venues," said Kairans.

It is impossible to predict at the moment whether New Hanza will be bought by a different developer or the bank's owners will themselves buy it from the bank, or maybe several investors will be found for the project, he added.

As reported, ABLV Bank has put on hold all contracts that the bank's subsidiary, Pillar signed with New Hanza quarter subcontractors.

The bank's liquidators will decide what happens to the New Hanza project.