TALLINN - Estonian builders will help develop an island in the Daugava River in an eight-year project worth hundreds of millions of euros, according to reports. Zakusala Estates, which is 50 percent owned by Merks, Merko's Latvian subsidiary, has obtained the right to develop some 13 hectares of land on the Zakusala island, which is situated in the Daugava just south of Riga's Old Town.
Riga's TV tower is located at one end of the island. Some 300,000 square meters of business, living and office space will be built on the island, the equivalent of four Viru Centers in Tallinn, the Eesti Ekspress weekly reported.
Zakusala Estates will invest some 7 billion kroons (447 million kroons) in the project.
Merks director Ivars Geidans said he expects the Zakusala development project to receive a building permit by next spring, after which it will take seven or eight years to complete development of the island. Merko's majority owner, Toomas Annus, said the project was in the early phase and that it was too early to evaluate its prospects. "What is quite clear is that the city of Riga is developing fast," he said.
Plans are to erect in the business and recreation center 24-story buildings housing shopping centers, hotels, offices, apartments and a spa establishment with a retractable roof. The island will also get a beach and a yacht harbor.
