First Stage of Homburg Group Project Completed

Homburg Group and RE&RE have completed the 1st stage of the investment project in Zolitude at the intersection of Priedaines and Anninmuizas Street. The ‘anchor tenant’ of the project is retail store ‘Maxima XX’. The opening ceremony of the 1st stage – retail store of 5000 m2 – shall take place on November 3. Works at the project were commenced on August 2010. Project was financed by Homburg Group and Nordea Bank.

The retail centre was constructed in accordance with the new Maxima design concept that will be presented for media at 10:30, November 3 during the opening ceremony of the new ‘Maxima XX’ retail store at 20 Priedaines Street.

According to the agreement between Homburg Group and SNC Lavalin on management of the real estate assets in Baltic Countries the latter will undertake the management of the retail store on Priedaines Street. Canadian company SNC Lavalin – one of the largest construction, engineering and project concession companies in the world – shall begin its operations in Latvia at the end of 2011.

‘Priedaine Street project is 1st of the 6 investment projects of Homburg Group to be implemented in Latvia in the nearest future. Cooperation with capable partners – construction company RE&RE and the co-financer Nordea Bank – has yielded the first results – we have successfully completed the 1st stage of the project. We plan also to construct and develop the 2nd stage – multi-storey dwelling with 131 apartments. Specious underground parking (4500 m2) for the 133 parking lots for the residential building was constructed already as a part of the 1st stage of the project’ comments James Gerry Torpey, Director of the Homburg Group in Baltic States.

Homburg Group has plans to develop other two retail centres in Riga. The projects are at the stage of technical design elaboration. It is planned that both of those objects shall be commissioned already on 2012. As James Gerry Torpey underlined ‘we are satisfied with the projects implemented so far, and are determined to continue retail store development in Latvia’.

‘Despite still shaky economic conditions we have completed the 1st stage of this project, and it serves as a proof that strong team of real estate developer, construction and banking professionals can implement large scale projects also today. I would like to extend my gratitude to all the involved persons and parties and thank them for the successful cooperation that truly encourages to keep on moving and to carry out new projects’, voiced Didzis Putnins, Director General of RE&RE.

Director of Nordea Bank in Latvia, Janis Buks: ‘We are gratified for the possibility to cooperate with high level professionals, who live up to the expectations and are accurate in terms of the set project deadlines. Construction proceeds as planned and the completion of the 1st stage is a positive sign for further development of the project. It shows stability and reliability that is especially important to us as a financial partner.’