State real estate agency expects growing profits

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Valsts Nekustamie Ipasumi (VNI), the government agency charged with the management of Latvia’s state-owned public properties, expects to generate €2.3 million in profits this year, while its annual turnover is projected to be €83.9 million, its CEO Mārtiņš Tols said at a conference Friday.

Addressing the Real Estate and Construction in the Baltics 2015 conference, the VNI head indicated that construction services provided 55% and public functions 44% of the company's revenue.

VNI aims to close 2016 with a €4.8 million profit on a turnover of €76.7 million. In 2017, the company's turnover is projected to be €70 million euros and profits to reach €5.5 million.

Tols said the state company's real estate portfolio includes 114 buildings with land, the cadastral value of which totals €122.769 million, as well as 17 land properties, worth €1.371 million in total. The portfolio also includes the Latvian Finance Ministry's properties - 341 buildings with land (€148.598 mln) and 185 land properties (€6.516 mln). The VNI portfolio also contains 4,144 other land plots worth €39.059 million.

The total floor space of the properties in the VNI portfolio is 1.489 million square meters, of which 55.2% are commercial buildings, 26.3% are educational and cultural buildings, 9.5% are outbuildings or auxiliary buildings, 5.6% industrial buildings, storehouses and garages, 2.3% dwelling houses and 1.2% healthcare facilities.

In 2013, VNI reported €44.828 million in turnover and a profit of €5.106 million euros.

The agency, which operates under the Finance Ministry, is involved in the lease, purchase, sale and other deals in real estate.

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