For several years now, one of the most noticeable elements of the Riga skyline has been the Zunda Towers skyscrapers, about which questions about occupancy are often raised, writes LSM+ citing Latvijas Radio.
Until now, the towers belonged to billionaire Yuri Shefler, but last week there were changes in the ownership structure, and new plans emerged regarding the skyscrapers. Questions are also raised about the recently initiated legal protection process for the alcohol producer Amber Latvijas balzams, which belongs to Shefler, Latvijas Radio reports.
Billionaire Yuri Shefler is better known as an industrialist in the alcoholic beverage sector, but he also owns real estate in the Vestiens area near Gaiziņkalns and in Riga. One of them is located in Pardaugava, next to the Zunda canal, with views of Old Riga and the surroundings. Until recently, apartments on the upper floors of both Zunda towers were sold for prices exceeding one million. The office spaces in the towers are still unoccupied.
Shefler Changes Citizenship
Information has emerged on social media that one of Shefler's real estate properties in Pardaugava has been sold to Arabs, while another is in the process of being sold. However, the executive director of the developer Towers Construction Management, Aigars Gerhards, indicated that the owners and the composition of shareholders have not changed.
According to changes registered in Lursoft, last week Yuri Shefler changed his citizenship from Israeli to British.
On Friday, April 17, changes were also made regarding the true beneficiaries of the developer Towers Construction Management, and now there are six individuals.
The citizenship of five individuals — just like Shefler — is now British, while one holds Russian citizenship. The countries of permanent residence listed include Guernsey, Jersey, and Switzerland, including Shefler.
Until last week, the board consisted of three members — the chairman was Alexey Oleynik, his deputy was a U.S. citizen, and a board member was a citizen of Spain.
On April 17, the composition of the board changed. It is now headed by Cypriot citizen Oleg Gusev, and the board includes Iveta Friedman and Zhanara Abidova, who have Latvian personal codes. The management board has not changed, and since 2022, the enterprise has been fully owned by SPI RE Holdings S.a r.l., and currently, no changes have been registered.
Lursoft board member Ainars Bruvelis noted that, according to the registered changes, Shefler actually remains the owner, but "the list of true beneficiaries has significantly changed."
"This chain is often longer than the Latvian owner and the Latvian enterprise. Most of these Latvian enterprises are owned by foreign companies, which, in turn, may be owned by various funds abroad," he explained.
Zunda Towers to Develop a Hotel
Two years ago, the Zunda Towers skyscrapers in Pardaugava were put up for sale. The price was 220 million euros. At that time, the executive director of Towers Construction Management stated that the main business of the complex's owner is not related to real estate, so the complex could always be purchased if a buyer's offer matched the owner's expected price.
Now, Gerhards says that a hotel is planned to be created in the tower. "Currently, we are not actively selling apartments. We plan to develop a hotel," he said.
Gerhards reminded that a concept for creating a high-class hotel in the residential tower had already been developed.
According to the initial plans, the hotel could be created within 12–18 months from the start of active construction work and adaptation of the premises for the hotel.
The hotel is planned as an international-level facility with more than 100 rooms, which will be located from the 20th to the 30th floor, and a full service infrastructure — conference rooms, relaxation, and wellness areas. Investments will exceed ten million euros. Initially, 149 rooms are planned.
What Experts Say
The president of the Latvian Association of Hotels and Restaurants, Andris Kalniņš, positively assessed the plans for creating a five-star hotel. However, he pointed out that the location outside the center raises questions about the return on investment.
The chairman of the board of Arco Real Estate, Aigars Šmits, noted that he had heard about the project, but more detailed conclusions are currently lacking information.
"The investor certainly has their considerations. If they see potential in this location and a decision has already been made based on market analysis, then any investments deserve approval. If it will be a large international chain, then, apparently, it fits into the overall picture, and they have their reasons to come and develop the hotel. The building has been vacant for too long — it’s better for it to be used than to lose value," said the expert.
Urban environment and tourism researcher, Riga City Council deputy Mārtiņš Engelis ("Progressives"), noted that the issue of profitability is the responsibility of investors. If there are many hotels in the center, the same cannot be said for Pardaugava. However, accessibility remains a problem, especially from the side of Kipsala.
Accused of Destructive Actions
In December last year, a long-term lease agreement for up to 30 years was signed with Grupo Hotusa, providing for the creation of a five-star Eurostars hotel.
However, now the developer claims that the actions of one of the creditors were destructive and hindered the development of the project. As a result, the company cannot yet start the implementation of the hotel, and the timelines for its opening are not defined.
According to Lursoft data, Towers Construction Management has accumulated a tax debt of more than 15 thousand euros. Gerhards stated that "this is directly related to the destructive actions of creditors and possibly intentional damage, including cash flow restrictions."
Currently, the company is considering the possibility of agreeing on a payment schedule.
Shefler Owns About 200 Real Estate Properties in Latvia
According to Lursoft, Shefler owns about 200 real estate properties in Latvia, employing around 600 workers.
"Some of them are being developed, some are managed. Among them are production enterprises, and there are quite a few. Speaking of the real estate portfolio, one of the properties being Zunda Towers, these companies collectively own more than 200 properties in Latvia," explained Lursoft board member Ainars Bruvelis.
The real estate belongs to both the enterprise Latvijas balzams and later acquired properties related to the Interbaltija group.
Shefler's main business is the production of alcoholic beverages. However, Amber Latvijas balzams is currently experiencing financial difficulties and is trying to maintain operations.
In early February, the court began a legal protection process (TAP) as the company could not meet its obligations. Its tax debt exceeds 28 million euros, and accounts have been frozen, which has effectively paralyzed operations.
Global events, including the Russian invasion of Ukraine and Shefler's public support for Ukraine, have affected the situation.
Solvency issues have also affected other companies owned by him, including Stoli Group, which was involved in the distribution of the "Stolichnaya" brand alcohol in the U.S. At the beginning of the year, the enterprise began bankruptcy proceedings.
Since the beginning of the war in Ukraine, the turnover of Latvijas balzams has decreased. Previously, the company transferred 70-80 million euros in taxes to the budget annually. The management hopes to exit TAP by the end of this year or the beginning of next year; otherwise, the losses will be significant.
