1 percent could give PIF hotel bid

RIGA - The private investment fund Privatais Investiciju Fonds could be a major contender in purchasing Hotel Riga for the figure of $169,491 in privatization certificates when the cadstre value of the hotel is $4.2 million. The actual price will be set if and when the downtown property goes to the Latvian Privatization Agency for disposal.

The University of Latvia and the Evangelical Lutheran Church, who hold 99 percent interest in the land are not economically able to purchase the hotel.

PIF has only a one percent claim on the land beneath Hotel Riga, but when the LPA officially receives a submission from the Latvian government to sell the property, PIF could have the opportunity to purchase the hotel very cheaply.

PIF was originally formed Oct. 1, 1996 as JB-Nita, when Ligita Aizpuriete, whose official residence was listed in Ogre, formed the company. The Enterprise Registry shows that few weeks later, Aizpuriete and Ainars Aizpurietis split the ownership 50-50 on Oct.23, 1996.

JB-Nita then changed ownership April 17, 1997 and took a new name - Privatais Investiciju Fonds -with Edgars Zakrizevskis owning 33.3 percent of PIF and Guntis Indriksons, general director of the Skonto holding company at 75 Elizabetes Street the other 66.67 percent.

PIF involved another partner Jan. 16, 1998. The partnership included Gints Melnalksnis with a 10 percent share of PIF. Indriksons became owner of 60 percent and Zakrizevskis the other 30 percent.

Current ownership records of PIF according to the latest registry on Feb. 2, 1999 show Indriksons sold his share of the company to Zakrizevskis while Melnalksnis kept his 10 percent.

The Latvian men's magazine Klubs published in its November 1999 issue that Skonto's holdings include the company Private Investment Fund.