Banks, Construction, Financial Services, Investments, Latvia, Real Estate

Originally, the 16-story office building, which ABLV Bank was developing for its own needs, was supposed to be built by 2020, but as the bank was hit by problems in February, Pillar lost its main financer. Miluns explained that due to this reason adjustments are being made to the office center project and that its completion will be delayed by a year.

“Still, we are continuing work on the construction works at New Hanza that cannot be put off. Originally, the office building was designed with the focus on the bank as the main user of the building. Now, the concept of the building is being redesigned to adjust it to any potential tenant of A-class offices,” Miluns explained.

He also indicated that Pillar is open to new business proposals and new investors and that the company is overhauling its financing structure.

“Some of the projects planned in the New Hanza quarter - the bank’s office building, the Contemporary Art Museum, the park and the school - have been indefinitely suspended,” Miluns said, adding that funding, however, has been provided for the construction of Hanza Perons multifunctional entertainment center which might be completed by March 2019.

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.