Decision on continuing development projects amid the current global pandemic
The AS Merko Ehitus Group management board has decided to continue the ongoing stages of Merko apartment development projects in Estonia, Latvia and Lithuania but not to launch new developments or new stages of ongoing projects for the next three months.
The subsidiaries of the group in Tallinn, Riga and Vilnius currently have about 800 apartments under construction. Merko will continue working toward completion of the stages of projects currently in the construction phase – in Tallinn, work will continue on the second stage of Uus-Veerenni (8 buildings), the first stage of Lahekalda (3 buildings) and the second (2 buildings) and third stages (2 buildings) of Pikaliiva. In Riga, Merks will continue the first stage of Viesturdāzs (1 building); and in Vilnius, construction will continue on Vilnelesslenis (6 buildings), the second stage of Rinktines Urban (3 buildings) and Basteja Life (1 building). Enhanced hygiene and safety requirements have been established on all construction sites based on the recommendations of the Health Board and the restrictions under the national emergency situation.
As the impact of the COVID-19 pandemic and the related restrictions cannot be accurately evaluated as of the current time, the management board of AS Merko Ehitus Group has decided not to launch new development projects or the subsequent construction stages in ongoing development projects for the next three months.
This decision also affects the third stage of the Uus-Veerenni development project in Tallinn. Earlier, the launch was publicly announced, but construction has been performed in very limited volume and contracts for the sale of the apartments have not yet started to be drawn up.
The pandemic and the resulting restrictions will have a negative impact on the construction sector and the group’s operating activity, but it is not yet possible to estimate the magnitude. The group’s companies are engaged in cooperation with all stakeholders to complete the ongoing apartment developments and sites built for customers under direct contract.