Baltic Outlook December 2018 | Page 126

PROMO / December Publicity photos HIGHEST STANDARDS of urban construction The Virtually anything except industrial production facili- ties may be built within the zone, which means that prospective tenants can enjoy unlimited possibilities in terms of what they want to realise. One of the most impressive New Hanza projects will be a three-storey building complex suitable for any A-class tenant(s). The total area of the project is 92,000 m 2 , of which 52,000 m 2  will be designated as office space (sufficient for 5000 employees), including 500 parking spaces. ‘This project is unique, and we are currently looking for an investor with whom to further its development. The investor will reap the rewards of not only a convenient location and an excellent environment with a new and organised infrastructure, but also one of the greatest values of all – time saved. As soon as an agreement is made, construction work on the project can resume immediately. The project has already been coordinated and its construction permit is valid. We have saved the investor about four years out of the project’s timeline,’ says Edgars Miļūns. The Pillar Group currently engages as a full-cycle real estate developer in the Latvian construction industry. It is involved in all project phases, from idea generation to building design, construction, tenant procurement, building management, and, if necessary, sales. Pillar would create only contemporary, high-quality business projects Edgars Miļūns, Chief Executive Officer at Pillar 124 / airBaltic.com Having a strong vision of what a well-planned and modern urban environment should look like, Ernests Bernis, the owner and a co- director of ABLV Bank, came up with the idea of establishing the concern. ‘Our main driver is Mr. Bernis’ appreciation of quality and a keen interest in urban development,’ says Edgars Miļūns, Chief Executive Officer at Pillar. ‘The decision to create a group of companies was based on the commitment that Pillar would create only contemporary, high-quality busi- ness projects that are flexible and adaptable to a diverse range of customers. It is important for us to keep as much control as possible at each stage of development in order to ensure maximum quality and to prevent any missteps from occurring.’ Pillar was created in 2008 when, in re- sponse to the global economic recession, ABLV Bank founded its subsidiaries in order to man- age and realise assets belonging to debtors who could no longer repay their loans. Since this line of business is no longer relevant, Pillar has now become a professional full-time real estate developer. The group includes Pillar Manage- ment, Pillar Development, Pillar Architek- ten, Pillar Contractor, Pillar RE Services, and Pillar Energy. A good indicator of Pillar’s philosophy and integrity is the Group’s current top priority: one of the most ambitious real estate develop- ment projects in Latvia – New Hanza – a city within the city, or more precisely, a centre for both financial transactions and cultural leisure. Uniquely located adjacent to the historic centre of Riga and around 24 hectares in size, the New Hanza site will be developed into a modern ur- ban neighbourhood with office buildings, resi- dential buildings, a museum, a cultural-event venue, a park, and other features that will provide a quality living and working environ- ment for many thousands of Rigans. It will also serve as a platform for business and cultural events on a European scale. Historically, the site was one of the most important transport, logistics and transaction hubs for the rapidly growing city of Riga – the city’s main railway freight station and yard. In order to adapt the site to suit modern require- ments, Pillar has built a completely new and independent infrastructure consisting of everything from street construction to the in- stallment of systems for sewerage, heat supply and telecommunications, all of which has been carefully integrated into the urban environ- ment. Tenants and investors will not have to worry about outdated communications or even about the accumulation of rainwater on streets and walkways – excess runoff will drain into a specially designed reservoir around which a park is planned to be constructed. ‘We know what a modern city should be like. Everything here will be new and planned-out to the last detail, while also respecting and preserving the history of the place.’ The first phase of infrastructure implementa- tion – construction of all roadways and laying of underground utility lines – is now completed. New Hanza employs the ‘plug and play’ principle – all the investor has to do is select an undertaking, because all of the necessary tech and engineering is already in place and set to go, allowing the investor to focus on the main thing – the creation of their own business. Moreover, if the investor does not have their own project development team, Pillar can provide a complete set of services, ranging from designing the building to its management once it is completed. ‘Looking at the office-building market in Riga, we see that it has stagnated over the last ten years, and our neighbours – Lithuania and Estonia – have overtaken us. In a sense, it is a paradoxical situation: it is difficult to de- cide on the construction of an office building if there is no set tenant, but it is also difficult to decide on the location and development of a business office if there is no suitable place for it. In response to this stalemate, our vision is to create an environment that understands business needs and provides the highest quality services in this field, from project initiation to management of the completed building, without skipping any of the intermediate stages of development,’ is how Edgars Miļūns addresses potential leaseholders and investors. ‘I would like to contend that Latvia has yet to see a project of this size, and with such care devoted to the entire process, implemented so far.’ To confirm that New Hanza can truly become ‘a city within the city’, Pillar is planning to launch a unique project in the spring of next year, namely, Hanzas Perons – a new, multifunctional space located within the historic Central Freight Station building. ‘This culturally and architecturally important building, which has no analogue, brings added value. We have taken care to save this testimony to history by giving it a breath of fresh air – new, high-tech solutions will allow Hanzas Perons – a new, multifunctional space located within the historic Central Freight Station building New Hanza’s three office buildings will provide over 52,000 m 2 of Class A leasable office space complemented by co-working spaces, catering, and leisure facilities on the ground level for quickly adapting the space between events, even making it possible to hold up to three separate events simultaneously,’ says Edgars Miļūns. The Contemporary Art Museum is also slated to be built in New Hanza, with a building designed by the world-famous architect David Adjaye of Adjaye Associates. ‘This is a good example of Pillar’s approach – we hold international architectural design competitions because we are always looking for the best solutions and we want each building to be exceptional,’ says Edgars Miļūns. Besides New Hanza, Pillar is also currently developing other projects: office building parks and logistics centres owned by New Hanza Capital, one of which is currently being redeveloped to become one of the largest logistics centres in Riga. The office park on Maskavas iela – construction of which is planned to be completed by mid-2020 – is also currently offering spaces for tenants. Another large and interesting site that Pillar is de- veloping is the former industrial park of Riga’s VEF electrotechnical factory, which includes the former manufacturing building and surrounding campus. ‘We are currently working on a project that includes renewal and transformation of the site. The VEF factory is a site of historical importance, the place where such innovations as the famous Minox mini- camera (1937) were invented and produced. Our vi- sion is no less interesting – in the near future this site will be a good fit for, say, IT companies or currently trending co-working spaces,’ reveals Edgars Miļūns. Reconstruction of the former VEF site is planned to be completed by the end of 2020. pillar.lv Baltic Outlook / 2018 / 125