Baltic States – CIS, Construction, Estonia, Real Estate

The company had issued bonds and was unable to redeem them and investors who had lost dozens of millions of kroons in the project issued a bankruptcy petition on July 20. The biggest investors of the project included well-known Estonian businessmen Marcel Vichmann and Hans H. Luik, but also Olari Taal and Enn Veskimägi.

Seaside Residence Baku OÜ board member Aivo Kuldmäe and former board member Erki Piirsalu have to hand over by September 15 to bankruptcy governor all information and documents concerning activities of Seaside Residence Baku OÜ.

In addition to the bankruptcy proceedings, the former initiators of the Baku real estate project are under criminal investigation for swindling. Erki Piirsalu and former Gild Bankers partner Tõnis Haavel and his business partner Harles Liiv have received indictments.

Äripäev wrote about the surprise of investors when they discovered how matters really were at the end of July. The project started around three years ago, when Gild Bankers advertised the Baku project as having 75% net yield. The plan was to buy 147 hectares of land in the Mardakan-Shumalan village’s coastal area to distribute it to 822 lots and build 39 aparmnet buildings and hundreds of private houses on them.