“Sirin Development” will demand compensation for the costs of the multi-million dollar project in Riga

It turns out that in 2022 in the middle of the year, the developer won the Riga municipality to organize an auction, in which a plot of 39 hectares near the airport was purchased for 5.6 million. Eur.

March 6 the deal fell through because the Ministry of Transport of Latvia accepted the municipality’s desire to sell em and the company was not allowed to register this acquisition.

It was planned to invest more than 100 million in the territory of Mkupurvo. EUR and built about 180,000 sq. m warehouse.

Laurynas Kuzavas, general director of Sirin Development, told the Latvian news agency LETA that he not only hopes to get back the money he paid for the plots, but also hopes that the incurred costs, which are still being calculated, will be compensated.

According to him, the company paid the fees and salaries to the banks that financed the plot transaction, and there were other expenses.

We respect the decisions of the authorities and will implement them. Therefore, it is to be regretted that the disagreements of the Latvian institutions harm the image of Riga and the city, become an obstacle to attract foreign investments, create new jobs and increase budget revenues. In addition, this is happening at a time when foreign investors are already very cautious and reluctant to invest in the Baltic countries, emphasizes L. Kuzavas.

According to him, the situation will be unpleasant because Sirin Development has devoted a lot of time, effort and financial resources to this project.

Latvian prosecutors claimed that after deciding to privatize the territory, the municipality did not properly assess the plots as they are necessary for the further development of the Riga airport. The territory was handed over for privatization back in 2012, after the rejection of the state plan to build a conference center.

Read more about the deal and the reasons why it didn’t happen.