Why does a technology entrepreneur invest in Cēsis?
“Real estate is one big experiment,” admits Agris Tamanis, co-owner of the technology company group “Draugiem Group,” whom we meet at the newly opened six-apartment hotel “Spīdalas nams” in Cēsis, which was built on the site of a former slum.
This is not the only building in the historical core of Cēsis that he and his team intend to restore and revitalize. Activity has also begun in the “Konrāda kvartāls”, which could contribute to the revival of the entire Rose Square. The company “Mājas Cēsis” will also one day embark on the creation of a rental village in Cīrulīši.
“Delfi Bizness” asks the entrepreneur what motivates him to invest in real estate and whether he is interested in another city or just Cēsis.
This is not the only building in the historical core of Cēsis that he and his team intend to restore and revitalize. Activity has also begun in the “Konrāda kvartāls”, which could contribute to the revival of the entire Rose Square. The company “Mājas Cēsis” will also one day embark on the creation of a rental village in Cīrulīši.
“Delfi Bizness” asks the entrepreneur what motivates him to invest in real estate and whether he is interested in another city or just Cēsis.
Why should a tech entrepreneur invest in real estate?
From the first day we created “draugiem.lv”, when some finances appeared, we thought about what to do with them - not to spend everything at once, but to diversify our income.
Real estate is one big experiment, I didn't initially associate it with business. I've been in Cēsis since I was a child, and these slums were here when I was still a little girl walking around the city. I would say this is a hobby for me.
I remember we had meetings with big brands, real estate business representatives, they listened with open mouths, wanted to hear business “cases”, because they calculated like this and that, nothing came of it. But I have a different calculation. You can invest in new businesses, develop something, earn more and more, and more, but I am one of those who likes to live beautifully, I like to enjoy the fruits. I would not be so happy if I invested all my income in future businesses, so that in my old age I would be happy with how many businesses, how much money. I balance. You know the saying – it’s good when enough is enough? I have been sticking to it since my days at the technical school, where there were radio constructors, I worked there, programmed, I liked it. I don’t come from a rich family, and that was enough for me. And even at this age I try to achieve a balance in order to be satisfied with life, happy. It is clear that investing in Cēsis is not a business for me for life. I hope that this house and others that we will renovate will stand for 100 years. It could be a business for children and grandchildren.
Once, 10 years ago, when I was asked why I was doing something in Cēsis, I blurted out – Cēsis invested in me and I have to give back. I liked that, and I like Cēsis.
How do the technology and real estate businesses differ? What is common and what is different?
We are new to the real estate business. We do everything for ourselves, we build all businesses for ourselves. If we don't know the answers, we don't know what would be better, then we do it based on the principle of what would be better for me.
I like technology. It's for the mind, with it I hope to develop myself until my last breath. This direction is more for the heart. And you could tell the difference in a year.
We tried, we made this house – “Spīdalas nams”. In Cēsis, there has always been a big problem with where to stay. The idea came – OK, it doesn’t cost much. We’ll fix up some slums – and there will be a place for guests to stay overnight.
Will you continue working in this field? Do you plan to offer housing not only for short-term, but also for long-term rental?
Yes, that will be all. But you can see for yourself how quickly we are going. This project (“Spīdalas nams” – ed.) was like an interlude. Three years ago we bought those properties called “Konrāda nams”. It is so close to the church, the city center, archaeologists, monuments protection institutions are interested. Three years have passed, and we are still processing the documents.
What will be in the “Konrādas nams” and the quarter?
According to today's estimates and current ideas, although they change often for us, there will be short-term apartments there, similar to “Spīdalas nams”, because there is a shortage of space for guests in Cēsis. Three small apartments in the main building could be rented out for long-term rent. The place is great - right in the center, it's impossible to be any deeper in the heart of the city. And right now we also see a cafe there. We want the guests to feel good, to have breakfast available to them. Here, in “Spīdalas nams”, there really is no such opportunity.
You once had an idea for a village. Could such a project be realized?
Yes, but there is a time for everything.
You asked – why real estate? It is a super new direction, and it is very difficult to find people who can be completely trusted. Since we ourselves do not know everything, it is important for us to find people who know these things and, most importantly, who do not have the first thought – “Draugiem Group”, then they will be able to “boil”. It is important for us so that we can believe that the services that are sold to us are worth it.
Due to private matters, cooperation has been established with both architects, designers and builders, they are already like friends, we trust them, they know what they are doing. Then you can do it honestly, so that I don't have to watch every action in Excel. I look you in the eye and believe that you will do it to the best of your ability and for as much as it really costs. It's a cool coincidence, and something like this can happen (points to the new apartments - ed.).
When we first bought “Konrāda nams”, we really thought that the next thing would be a village, we took the land. But seeing that it doesn’t go as fast as programming a portal, we have “grounded down”. We have promised quite a lot, until then we need to get things in order, so that “what was promised, was done”, then we will move on.
New construction outside the historic center might be easier.
Yes. If we were really a real estate development company, we would go for simplicity, cheapness. We do more here, driven by other motives. We like challenges, and this is a challenge.
When we bought this building from a woman, it was not recommended to go deeper into the second floor because it could be broken into. She shyly mentioned to us – understand, you will have to invest here, you can't just stick wallpaper and offer to come and live.
How are your plans affected by rising construction costs and the rise in the cost of bank loans?
We live here, everything here affects us. Maybe we have a slightly different perspective, we don't go with the flow, we don't worry about any unfavorable change. We once lost so much, made mistakes, paid millions for mistakes that, from today's point of view, are stupid. We could have worked smarter and earned more, but we did it very interestingly. Business is like a lifestyle, we don't strive for every cent. It's important to feel good about yourself, it's important to reduce stress for yourself, and sometimes you have to say - as it is, it is. So my answer - yes, it all affects us, but we look at it exactly as it is - as it is, it is.
Have you considered the possibility of implementing projects elsewhere, for example in Riga?
If the recipe works, if something has worked in life, try to stick to it. In this regard too – if we have a village, if something “scales” up, we will see that something has worked, then we will go anywhere and do it as a serious business. This is an experiment, a groping. But we have always done it, and sometimes it “shoots”, and when it “shoots”, then we start developing it.
Projects in the old town are not really scalable.
Yes, this project is more of a “Thank you, Cēsis!” Villager – an opportunity to do something more “business-like”. And if it takes off, if we see that it is appreciated, that it succeeded, that it is a business, then – why not?
Will there be rental properties in the village?
Yes, it's not a “buy and sell” business, it's super uninteresting. That's not us. If we do something, it's important that it's liked and interesting.
Is Cēsis a relatively “hot” spot in Latvia and would people want to live there? During Covid-19, there was a feeling that everyone wanted to get away from Riga.
The Covid-19 period also showed that Cēsis is “impossible”, there were no options to get here from “outside”. When I was asked – you know everyone there, you know everything, please help me find a place, I couldn’t. Cēsis is lucky with its leadership, there are many intelligent, cultured people here.
It's not like you can live, relax here, and work in Riga, but you can work remotely, why not in a wonderful environment with fresh air.
Real estate is one big experiment, I didn't initially associate it with business. I've been in Cēsis since I was a child, and these slums were here when I was still a little girl walking around the city. I would say this is a hobby for me.
I remember we had meetings with big brands, real estate business representatives, they listened with open mouths, wanted to hear business “cases”, because they calculated like this and that, nothing came of it. But I have a different calculation. You can invest in new businesses, develop something, earn more and more, and more, but I am one of those who likes to live beautifully, I like to enjoy the fruits. I would not be so happy if I invested all my income in future businesses, so that in my old age I would be happy with how many businesses, how much money. I balance. You know the saying – it’s good when enough is enough? I have been sticking to it since my days at the technical school, where there were radio constructors, I worked there, programmed, I liked it. I don’t come from a rich family, and that was enough for me. And even at this age I try to achieve a balance in order to be satisfied with life, happy. It is clear that investing in Cēsis is not a business for me for life. I hope that this house and others that we will renovate will stand for 100 years. It could be a business for children and grandchildren.
Once, 10 years ago, when I was asked why I was doing something in Cēsis, I blurted out – Cēsis invested in me and I have to give back. I liked that, and I like Cēsis.
How do the technology and real estate businesses differ? What is common and what is different?
We are new to the real estate business. We do everything for ourselves, we build all businesses for ourselves. If we don't know the answers, we don't know what would be better, then we do it based on the principle of what would be better for me.
I like technology. It's for the mind, with it I hope to develop myself until my last breath. This direction is more for the heart. And you could tell the difference in a year.
We tried, we made this house – “Spīdalas nams”. In Cēsis, there has always been a big problem with where to stay. The idea came – OK, it doesn’t cost much. We’ll fix up some slums – and there will be a place for guests to stay overnight.
Will you continue working in this field? Do you plan to offer housing not only for short-term, but also for long-term rental?
Yes, that will be all. But you can see for yourself how quickly we are going. This project (“Spīdalas nams” – ed.) was like an interlude. Three years ago we bought those properties called “Konrāda nams”. It is so close to the church, the city center, archaeologists, monuments protection institutions are interested. Three years have passed, and we are still processing the documents.
What will be in the “Konrādas nams” and the quarter?
According to today's estimates and current ideas, although they change often for us, there will be short-term apartments there, similar to “Spīdalas nams”, because there is a shortage of space for guests in Cēsis. Three small apartments in the main building could be rented out for long-term rent. The place is great - right in the center, it's impossible to be any deeper in the heart of the city. And right now we also see a cafe there. We want the guests to feel good, to have breakfast available to them. Here, in “Spīdalas nams”, there really is no such opportunity.
You once had an idea for a village. Could such a project be realized?
Yes, but there is a time for everything.
You asked – why real estate? It is a super new direction, and it is very difficult to find people who can be completely trusted. Since we ourselves do not know everything, it is important for us to find people who know these things and, most importantly, who do not have the first thought – “Draugiem Group”, then they will be able to “boil”. It is important for us so that we can believe that the services that are sold to us are worth it.
Due to private matters, cooperation has been established with both architects, designers and builders, they are already like friends, we trust them, they know what they are doing. Then you can do it honestly, so that I don't have to watch every action in Excel. I look you in the eye and believe that you will do it to the best of your ability and for as much as it really costs. It's a cool coincidence, and something like this can happen (points to the new apartments - ed.).
When we first bought “Konrāda nams”, we really thought that the next thing would be a village, we took the land. But seeing that it doesn’t go as fast as programming a portal, we have “grounded down”. We have promised quite a lot, until then we need to get things in order, so that “what was promised, was done”, then we will move on.
New construction outside the historic center might be easier.
Yes. If we were really a real estate development company, we would go for simplicity, cheapness. We do more here, driven by other motives. We like challenges, and this is a challenge.
When we bought this building from a woman, it was not recommended to go deeper into the second floor because it could be broken into. She shyly mentioned to us – understand, you will have to invest here, you can't just stick wallpaper and offer to come and live.
How are your plans affected by rising construction costs and the rise in the cost of bank loans?
We live here, everything here affects us. Maybe we have a slightly different perspective, we don't go with the flow, we don't worry about any unfavorable change. We once lost so much, made mistakes, paid millions for mistakes that, from today's point of view, are stupid. We could have worked smarter and earned more, but we did it very interestingly. Business is like a lifestyle, we don't strive for every cent. It's important to feel good about yourself, it's important to reduce stress for yourself, and sometimes you have to say - as it is, it is. So my answer - yes, it all affects us, but we look at it exactly as it is - as it is, it is.
Have you considered the possibility of implementing projects elsewhere, for example in Riga?
If the recipe works, if something has worked in life, try to stick to it. In this regard too – if we have a village, if something “scales” up, we will see that something has worked, then we will go anywhere and do it as a serious business. This is an experiment, a groping. But we have always done it, and sometimes it “shoots”, and when it “shoots”, then we start developing it.
Projects in the old town are not really scalable.
Yes, this project is more of a “Thank you, Cēsis!” Villager – an opportunity to do something more “business-like”. And if it takes off, if we see that it is appreciated, that it succeeded, that it is a business, then – why not?
Will there be rental properties in the village?
Yes, it's not a “buy and sell” business, it's super uninteresting. That's not us. If we do something, it's important that it's liked and interesting.
Is Cēsis a relatively “hot” spot in Latvia and would people want to live there? During Covid-19, there was a feeling that everyone wanted to get away from Riga.
The Covid-19 period also showed that Cēsis is “impossible”, there were no options to get here from “outside”. When I was asked – you know everyone there, you know everything, please help me find a place, I couldn’t. Cēsis is lucky with its leadership, there are many intelligent, cultured people here.
It's not like you can live, relax here, and work in Riga, but you can work remotely, why not in a wonderful environment with fresh air.
Published22/02/2024
Ingrīda Drazdovska
