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Monday 26.08.2019 | Name days: Tālija, Natālija, Broņislava, Broņislavs
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Multi-storey building at Zolitude Tragedy site sold at an auction for 3.9 million euros

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Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RUThe multi-storey building located at the site of Zolitude tragedy in Riga, Priedaines Street 20, has been sold at an auction for EUR 3.9 million, according to information published at eizsoles.ta.gov.lv.

The auction was organized by sworn court bailiff Rolands Veinbers. The initial price was EUR 3.2 million.

The auction was organized in favour of Estonian Eesti Kreditbank. Homburg Zolitude representative Ruta Grikmane told LETA that the bank most likely decided to look for a new investor, which is something Homburg Zolitude has no way to influence this process. With that, Homburg Zolitude has basically lost all control over the future and development of the building.

Estonian Eesti Krediidipank requested enforcement of real estate property owned by Homburg Zolitude. This company was the developer of the entire Priedaines Street 20 project – the collapsed supermarket and the adjacent apartment building.

Homburg Zolitude’s legal protection process, based on which the bank commenced enforcement of property, was completed 27 September 2016.

As it is known, local residents and relatives of victims of this tragedy had previously expressed their opinions about the apartment building – most said it should be demolished and a commemorative area should be built in its place. Zolitude 21.11 association also does not support further existence of the apartment building. Regina Locmele-Lunova, the head of the association, had previously voiced concerns that the auction was organized for the building’s developer to avoid paying compensation to victims of the tragedy.

«All that’s left now is to watch how the scenario develops. One option – the new owner of the building will be the bank’s subsidiary dealing in real estate management. The second option includes a secret agreement between the bank and Homburg Zolitude. Maybe the building will be bought by a company associated with Homburg Zolitude. This would help the bank recover its money and Homburg Zolitude – avoid having to pay compensation,» Locmele-Lunova explained.

Only Maxima currently pays compensation to victims of the tragedy. Homburg Zolitude has yet to pay anything.

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