EU – Baltic States, Lithuania, Real Estate

The State Property Fund (VTF) is planning to privatize 200 objects in 2013 and receive LTL 21 million (EUR 6 million). Among the most expensive objects are: 87.4 percent of Autoukis company shares worth LTL 4.83 million (EUR 1.4 million), guest house in Vilnius Latviu st. worth LTL 7.46 million (EUR 2.16 million), a bank building in Klaipeda - LTL 4.5 million (EUR 1.3 million), a clinic building in Siauliai - LTL 1.23 million (EUR 0.36 million), a part of holiday homes - LTL 1.1 million (EUR 0.32 million) and employee development and healthcare centre in Palanga - LTL 2.8 million (EUR 0.81 million).

However, there is little possibility that they will be sold successfully. For example, VTF has failed for the third time to find a buyer for a Bank of Lithuania building and its two plots of land in Klaipeda. The last time it was offered to buy LTL 5 million (EUR 1.45 million) priced object by hire purchase with a 25 percent initial contribution. Yet, the auction was not held as there were no participants.

Other state owned properties are also hard to sell. Last year it was expected to privatize the guest house in Vilnius Zverynas district for LTL 10 million (EUR 2.90 million), when no buyers emerged the price in 2013 was lowered by LTL 2.5 million (EUR 0.72 million).

VTF Deputy Director of Privatization Department Irena Vinciuniene told daily Lietuvos Zinios that minor objects where no big investments are needed for reconstruction find new owners fast. For example, apartments, garages, warehouses, properties in prestigious places of major Lithuanian cities which can be used as cafes and restaurants. While properties which have a specific purpose, e.g. the bank building in Klaipeda, are hard to privatize and find new use - they need big investments and opportunities for business to be profitable.

"State property privatization has been ongoing for more than 20 years and most of the property has already been privatized. What is left is not as attractive as in the past, when shareholdings of major industrial companies, banks, energy monopoly companies were being privatized," said Vinciuniene.

State Enterprise Turto Bankas (TB) is in a similar situation. In 2013 TB expects to sell 36 objects of public purpose and about 20 official apartments (half of which outside Vilnius). It is expected to receive LTL 1.6 million (EUR 0.46 million) for these sales. Other objects such as Seimas' holiday homes in Palanga, former police unit building in Vilnius and a dormitory in Klaipeda are evaluated at LTL 3 million (EUR 0.87 million) each.

Last year TB sold state property worth LTL 14 million (EUR 4.05 million) in total. Most expensive object was former Prosecutor General's Office building sold for LTL 4.2 million (EUR 1.22 million), reported LETA/ELTA.