Financial Services, Investments, Latvia, Legislation, Real Estate

The administrator hopes to sell at the auction five Ominasis Latvia real estate properties in Jurmala, and almost 15,000 units of movable property. The starting price of the repeat auction is EUR 2.9 million.

The previous auction was scheduled for August 12, when the starting price was EUR 3.8 million, however, it was called off due to low number of bidders. Kreics indicated that the next auction will include a different set of property and a reduced starting price.

Jurmala City Council previously announced that it is interested in buying Kemeri Sanatorium, using the municipality's funds in the amount of EUR 4 million. Jurmala Mayor Gatis Truksnis (Greens and Farmers' Union) believes that the best option would be to attract a private investor instead of using the municipality's funds, nevertheless, "if all else fails", Jurmala City Council will be ready to acquire the sanatorium.

Since the auction in March, Kreics has met with several investors who have been introduced with relevant documentation concerning the property. Several investors had shown considerable interest in Ominasis Latvia, which leads to believe that the auction might turn out successful.

If the auction is successful, Ominasis Latvia will be capable of covering the majority of creditor claims, which currently amount about EUR 4 million.