Lithuanian real estate developer Sirin Development will demand a compensation of losses caused by Riga City Council’s decision to cancel results of auctions of 22 plots of land near Riga Airport, as confirmed by the company’s board member Laurynas Kuzavas.
Because the city council decided to cancel results of the auction, Sirin Development hopes it will be possible to recover the money invested into the plots of land – EUR 5.7 million – as quickly as possible.
Kuzavas said the losses will be calculated because after the acquisition of plots of land Sirin Development continued paying the land tax and interests to the banks that provided loans for the purchase. There were other expenses as well. Once Sirin Development has received information regarding the cancellation of the auction, the company will demand compensation of losses.
“We respect the decisions of authorities. However, it should be noted with regret that the discrepancies between the Latvian institutions undermine the image of both Riga and the country as a whole, and serve as an obstacle to attracting foreign investment, creating new jobs and increasing budget revenues. Moreover, this happens at a time when foreign investors are already very cautious and reluctant to invest in the Baltic States,” said Kuzavas.
He added that the situation is very unpleasant because Sirin Development put a lot of time, effort and finances into this project.
“We have lost an opportunity of a good project that would have brought tangible benefits to the city, the airport and our company. As we can see, this situation is unpleasant for the municipality as well,” added Kuzavas.
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