On 1 August 2026, a repeat auction was launched for the municipal property “Gaujienas Jaunā pils”, which successfully concluded on 31 August of the same year. Not only is this a significant event for the palace itself, but also for Gaujiena and the historic manor complex as a whole.
Two bidders were approved to participate in the electronic auction. At the close of the auction, the property was acquired by SIA “Matex Financial Group” for EUR 173,500, which is 23% above the set starting price. The full amount was credited to the municipality’s bank account on 25 September 2026
Before approving the bidder’s participation in the auction, compliance with the auction rules was verified, including whether the bidder had any tax debts administered by the State Revenue Service exceeding EUR 150 or any outstanding liabilities to Smiltene Municipality. An additional check was also carried out against the Latvian national, European Union and U.S. OFAC sanctions lists. No current restrictions or encumbrances were identified in relation to the legal entity that would indicate its direct or indirect inclusion on any sanctions list.
The purchase agreement is currently being prepared. Once it has been signed by both parties, ownership of the property will be registered in the Land Register in the name of the new owner.
When launching the auction, the municipality’s objective was not simply to sell the property for the highest possible price, but to find a suitable, responsible and development-oriented owner capable of ensuring the long-term sustainability of the palace.
For this reason, the auction terms included several requirements from the outset that the new owner will be obliged to fulfil, including ensuring public access to the palace grounds. A number of development obligations were also stipulated, including stabilisation of the slope and restoration of the façade. Throughout the entire development period, the palace must also be maintained in an appropriate technical and visual condition, preventing deterioration, damage or any loss of the cultural monument’s heritage value. At least EUR 1,000,000 must be invested in the development of the property within five years.
“To successfully continue the work already begun, the municipality will establish a coordination working group for the development of the Gaujiena Manor complex. Its task will be to promote close and constructive cooperation between the municipality and the new owner of the palace, coordinate matters where the interests and plans of both parties intersect, and view the Gaujiena Manor complex not as a collection of separate properties, but as a unified historical and cultural environment to be developed as a whole,” says Otārs Putrālis, Head of the Working Group for the Disposal of Gaujiena New Palace and Member of Smiltene Municipality Council.
