Rietumu Banka is financing the renovation of the historical building in the centre of Riga

29 January 2024, 14:46

Rietumu Banka has granted financing of 3.3 million euros for the renovation of a historical building in the centre of Riga, Krišjāņa Valdemāra iela 61.

The loan for this purpose was issued to SIA V61 – an Indexo Real Estate Fund group company, managed by SIA Provendi Asset Management AIFP.  

The building at Krišjāņa Valdemāra iela 61 was constructed between 1912 and 1914 according to the design of the architect Herberts Tīmanis. The building is now a cultural monument of national importance, with a set of values that need to be preserved, including a special roof shape, interior decoration, stair railings and decoration, historical elevator, original exterior doors, interior doors and others; and potential new cultural values are being discovered.

Due to historical events, the building has been poorly maintained in recent decades, and before the renovation began, the state of preservation of its values was considered unsatisfactory. Thanks to financing from Rietumu Banka, the building will be completely renovated, preserving and reconstructing the historical facade, roof and interior elements.

As emphasized by Jeļena Buraja, Chairman of the Board of Rietumu Banka: "Renovation of cultural monuments is an essential part of preserving and reviving the landscape of the historical centre of the capital of Latvia. We appreciate Indexo Real Estate Fund's commitment to fully restore this building to its grandeur while making it functional and comfortable for its new residents. Thanks to such projects, Riga as a city is becoming more and more beautiful and friendly for people of our Latvia."

Whereas, the Chairman of the Board of Provendi Asset Management, Kristaps Bērziņš, notes: "For the implementation of this ambitious plan, we were looking for a reliable and competent financial partner who perceives every nuance of a joint real estate renovation project. I am pleased with the cooperation with Rietumu Banka, as in addition to providing the necessary financing, it also became our partner. After the works are completed, the residents of Riga may be truly proud of another outstanding architectural monument and a new long-term rental property house."

The renovation of the building at Krišjāņa Valdemāra iela 61 is planned to be completed by the end of the summer of 2024. It will have 68 apartments with a total leasable area of 2906 m2. After the completion, the apartments will be let out for a long-term rental.

The building at Krišjāņa Valdemāra iela 61 was built between 1912 and 1914 as a rental property house, with shops on the first floor. The author of its construction project, architect Herberts Tīmanis, was the first owner of the building and lived there until the World War I. In the 1930s, the owner of the building was Shlomo Westermann and the building was home to Latvian scientists and artists: Associate Professor of the University of Latvia, Dr. Phil. William Cl. Matthews, as well as the painter and graphic artist Marija Muciniece.

About Indexo Real Estate Fund

AS Indexo Real Estate Fund is an independent real estate investment fund which provides value to its investors by managing real estate investments in the Baltic countries. Thanks to its team of well-known and experienced specialists, the fund invests in particularly high-quality real estate assets in the capital cities and regions of the Baltics. SIA V61 belongs to "INDEXO Real Estate Fund" group of companies.

About Provendi Asset Management AIFP

SIA Provendi Asset Management AIFP is an alternative investment fund manager registered with the Bank of Latvia, founded by IPAS Indexo and private partners. The management team has more than 20 years of experience in the investment, commercial banking and real estate sectors. Currently, SIA Provendi Asset Management AIFP manages the Indexo Real Estate Fund.

Jeļena Buraja comments on the trends in the Latvian financial market

Jeļena Buraja, Chairman of the Board at Rietumu Banka, shared insights with the news agency LETA, evaluating the main trends in the Latvian financial market this year and giving forecasts for the next year.

28 December 2023, 10:30 Financial Results