Kapitel and Merko signed an agreement for the construction of the Elemental Skanste office buildings

Kapitel and Merko/Merks signed a nearly EUR 49 million contract for the construction of the Elemental Skanste office buildings in the Skanste district of Riga. Two interconnected 10-storey buildings will be completed in the spring of 2023. Kapitel’s total investment in the development of the office building is approximately 60 million euros.

“Elemental Skanste project includes next generation office buildings in Riga, characterised by outstanding architecture and modern technical solutions. The energy efficient buildings are designed to meet the high level of the international BREEAM standard of Excellent. We use environmentally friendly energy from energy piles to partially cover cooling and heating needs. Elemental Skanste is for companies that value their employees – the office premises have a first-class indoor climate, the storeys are three metres in height and the raised floors provide flexibility to change the spatial plan and the location of workstations,” said Rasa Auziņa, Kapitel Development Project Manager of Elemental Skanste.

The total gross floor area of the two interconnected buildings is 33,500 m², with there being 21,000 m² of Class A rental space. In addition to the representative office space, the office buildings will include a conference centre, co-working area, a 400-space bicycle parking facility with shower and changing rooms, and various catering and service areas. Together with the building, approximately 500 parking spaces will be completed, including 200 spaces in the storeys below the buildings.

The Elemental Skanste development project (elemental.lv/) will rise in the heart of Skanste, Riga’s new business district, next to Arēna Rīga and across Luminor Latvian head office. There are two parks located near the new office building: Skanstes Park, and across Skanstes Street there will be one of Riga’s biggest, a new three-hectare public park with several sporting and leisure facilities completed in 2022. The location ensures a direct connection to the city centre and convenient access to various modes of transport. This is the first stage of the Skanste development project, and in the future Kapitel is planning to build at least three additional office buildings and a multi-storey car park here.

“Global construction industry trends are entering Latvia and we are honoured to participate in the development of Elemental Skanste project. A modern office building will be created, combining high quality standards and excellent sustainability indicators, creating a progressive work environment for future employees,” said Andris Bišmeistars, Member of the Management Board and Head of Construction at SIA Merks. “Merks goal is to build an environment for growth – and this project will definitely show it!”

Kapitel is among the largest real estate companies in the Baltics, developing, owning, and managing shopping centres, hotels and office buildings. The Group’s real estate portfolio includes over 244,000 sq m of rental premises. The company owns four office buildings (Delta Plaza and Sõpruse Ärimaja in Tallinn, Narbuto 5 in Vilnius and I.P.Pavlova 5 in Prague) and has holdings in four shopping centres (Spice and Spice Home in Riga, Panorama in Vilnius and Viru Keskus in Tallinn). The company owns Nordic Hotel Forum (operated by OÜ Nordic Hotels) and, with AS Infortar, co-owns the Tallink City Hotel operated by Tallink Hotels. Moreover, the company has a 50% stake in Nordassets OÜ that owns two logistics centres on the Tallinn ring road.