Linstow Center Management, the Norwegian-owned real estate developer, announced it invested about 35 million euros in developing the area around the Riga Central Railway Terminal. Chairman Frode Gronvold said that 25 million euros had been invested in the Origo shopping mall and in rebuilding the railway terminal's clock, while another 10 million euros have been invested in reconstruction of the Central Railway Terminal, which is owned by Latvijas Dzelzcels (Latvian Railway). "For now we have no definite plans concerning our further cooperation with Latvian Railway, but taking into account the possibilities for successful cooperation, it will surely be continued," Gronvold said.
Legendijuhtimise (Legend Management), which operates the Kolm Ode and Saku Rock hotels in Tallinn and the Georg Ots Spa hotel in Kuressaare, said it would invest 175 - 180 million kroons (11.2 - 11.5 million euros) into the new five-star Telegraaf Hotel in Tallinn's Old Town. Michael Stenner, director general of the Telegraaf, said that, considering the location of the hotel in the historical center, its size and price level, the company is aspiring to become the leader in that market segment. The hotel, to be built at Vene Tanav 9 in the vicinity of Town Hall Square, will have 89 rooms. The hotel will likely open its doors in summer 2006.
Rigas Vagonbuves Rupnica (Riga Railcar Factory), a rail car construction and repair plant, announced it expected to increase production five-fold by 2010 in accordance with its development plans. The company intends to improve its design and production cycle, as well as raise employees' qualifications. It also plans to reconstruct production lines, workbenches and equipment. Management hopes that these steps will help the company gain back its former position on the market. During Soviet times, RVR played an important role in Eastern Europe's rail-car production. This year, the struggling company's production is expected to reach $20 million.