Published: 2021-07-23 10:01:19 CEST
Pillar Capital, AS
Inside information

Pillar Capital, AS to develop an office building worth 26 million euros

Riga, Latvia, 2021-07-23 10:01 CEST -- In July of this year, the real estate developer Pillar Capital, AS will begin the development of an office building at 1 Mihaila Tāla Street, Riga. The new Class A office building will be the first of the office buildings planned in the New Hanza territory. For its development, Pillar Capital has attracted 18.77 million euros in funding.

The architects and engineers of Pillar Group have paid particular attention to keeping the office building not only modern and functionally well thought out but also in line with the principles of sustainable building, which will be certified by the BREEAM Excellent rating.  

The main part of the building will have 6 floors with a protrusion of up to 12 floors in the tower section. An area of up to 12 000 m² will be available for rent, the total area of the building being 17 000 m². The ground floor is meant to house commercial spaces, of which 300 m2 will be allocated to a catering services provider.  

Specifications of the office building:

  • Class A office and nearly zero-energy building;
  • Office spaces of different sizes on each floor – from 150 m2 to 2000 m2;
  • Office premises are planned to have raised floors, which will facilitate office planning for specific tenants;
  • Air circulation and cooling systems of the highest category;
  • Dual power supply and a separate connection to a diesel generator will be provided, as well as solar panels will be installed. 

For the convenience of the tenants, there will be 96 parking spaces, from which 65 will be built indoors, and these will include electric car charging stations. Additional 500 parking spaces will be available around the building in the New Hanza territory. There will also be bicycle parking for a total of 330 bicycles and electric scooters, from which 175 spaces will be located under a specially built canopy. 

The Chairman of the Board of Pillar Capital Edgars Miļūns states, “The office building is being developed next to the cultural site Hanzas Perons that has been awarded in different local and international architectural-construction competitions. Therefore, our duty also in developing this building is not to retreat from the primary principles of our work – impeccable quality and immersion in all details. Despite the COVID crisis, which has introduced changes in the office rent market, new office spaces in Riga have excellent potential, as the demand remains at a high level; moreover, in terms of supply, Riga still lags behind the capitals of our neighbouring countries”.

During the construction process of the office building, Pillar Capital will engage around 30 subcontractors, whereas, construction and other tasks will be carried out by approximately 150 persons. The company Pillar Contractor is the general contractor, the design work was managed by Pillar Architekten and the architectural part of the construction project was developed by MARK Arhitekti. The construction is planned to be completed by the end of 2022. The building will be managed by Pillar Property Management.

The planned total costs for the development of the whole project will surpass 26 million euros, which includes the construction costs estimated at 17.3 million euros. 

Pillar Capital, AS is a company founded in 2006. The objectives of its operation include investing own and third party funds in commercial and residential real estate objects to achieve sustainable increase in income from renting the premises and enlarging of the value of properties.

         Artūrs Eglītis
         Head of Marketing and Communication
         Pillar Capital, AS
         Tel.: +371 6777 5606
         arturs.eglitis@pillar.lv