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Western investments in Latvia's construction sector can be expected already in 2013

Didzis Putnins. Photo: Edijs Palens/LETA.
 RIGA, Nov 21 (NOZARE.LV) - The greatest activity of private investors is currently observed in construction of commercial buildings as part of chain stores' struggle for larger market shares; if the economic recovery in Latvia continues at the current pace, and if the problems in the eurozone are solved, the first Western investors could enter Latvia already next year, as construction company "Re&Re" Director General Didzis Putnins says in an interview with "Nozare.lv".

"We know that investors are also interested in various industrial and logistics projects. But it takes time, Western investors will be watching Latvia a year or two more, to see if the country's success story continues. Once confident that Latvia is capable of development and having a balanced budget, investors will bring their money here," said Putnins.

In the housing sector, private investors are currently interested in only two types of business, of which one is the development of apartment buildings in Jurmala for buyers from the East, who believe that investing money in Latvia is safer than in Russia, notes Putnins.

"Large part of these investors are also from the East. For instance, this past summer we completed building an apartment building at 34 Dzintaru Boulevard in Jurmala for an investor from the East. The project is also meant for buyers from the East," said "Re&Re" head.

The other housing sector area that interests private investors is apartment buildings for middle-class buyers. For instance, Canadian property developer "Homburg Group" has signed a contract with "Re&Re" on the construction of a 12-story apartment building in Riga's Zolitude neighborhood. The contract is worth more than LVL 5 million, said Putnins.

"Re&Re", founded in 1993, is one of the largest construction companies in Latvia.

In 2011, "Re&Re" posted LVL 23,527,842 in turnover, which is 12 percent less than in 2010. The company's profit last year totaled LVL 1,739,913, a 46.5 percent decrease on 2010.

The company belongs to Margers Bitmetis, Egils Berzups, Ainars Paunins and Didzis Putnins (25 percent each).

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