The state has been trying to sell the building in the center of Riga, known as the 'House of Moscow,' for two years now, but there is still no interest from investors. Each unsuccessful auction is accompanied not only by additional maintenance costs but also by a lost opportunity to obtain funds that are planned to be directed to support Ukraine. What options are there to change the sales strategy?
The state took ownership of the so-called 'House of Moscow' two years ago; however, despite eight attempts to sell it at auction, a buyer has yet to be found, reports TV3 News. Potential investors are deterred by both the political backdrop of the property and possible legal risks, as well as the specific purpose of the building. Therefore, the question of whether the previous approach to the sale can be changed is becoming increasingly relevant.
Moreover, over these years, the price of the property has been reduced by 40%, and at the latest auctions, the building is offered for just over 2 million euros. The situation after the eighth unsuccessful auction requires serious evaluation, emphasizes the Chairman of the Saeima National Security Commission Ainars Latkovskis:
"This is just one of the possible solutions that, undoubtedly, after this eighth attempt, will have to be considered much more seriously. The decision is correct — this abscess needs to be cut out. It is clear that to a certain extent there is attention from Russia or the influence of threats, and the law can always be changed, improved, and corrected if necessary and if there is an agreement."
Meanwhile, the Ministry of Finance, as the holder of the capital shares of the building, emphasizes that the sale of the property will continue to be organized through auction, as the state currently has no other safe alternatives.
"We do not see the possibility of doing anything else in this situation. We have no other alternatives; we do not see anyone wanting to take the risk of being in conflict with the Russian Federation. We have no desire to keep this in our portfolio, and so on; we would gladly give it away for any price, but right now we see that this is impossible," stated Finance Minister Arvils Ašeradens.
The maintenance of the building in 2024 cost approximately 30,000 euros, and last year the expenses were even higher. If any auction proves successful, the maintenance costs will be covered from the proceeds.
