Auction – The New Castle of Gaujiena

Dear Cooperation Partners,

The Municipality of Smiltene County hereby informs you about a long-term investment opportunity – Gaujiena New Manor, a late 19th-century historic manor building with the status of a State-protected cultural monument, located in a scenic and culturally significant environment in Northern Vidzeme (Gaujiena, Gaujiena Parish, Smiltene County, LV-4339).

The municipality’s objective is not short-term divestment or price competition, but rather the attraction of an experienced, professional, and financially capable investor who is able to restore and develop this property, creating sustainable economic activity while preserving its cultural heritage value.

PROPERTY DESCRIPTION

Gaujiena New Manor is an architecturally expressive historic property situated in a quiet, nature-surrounded setting near the Gauja ancient valley. The building has long served public functions, including use as an educational institution, which has preserved a functional spatial layout that allows for flexible adaptation to various development scenarios.

Key strengths of the property include:

• authentic historic architecture with strong identity and storytelling potential;
• a secluded and peaceful location suitable for premium, wellness, recreational, or quality-of-life projects;
• an attractive natural and cultural landscape suitable for outdoor and recreational activities;
• sufficient scale for multifunctional development;
• a predictable, professional, and cooperation-oriented municipal position.

Additional significant value is provided by Gaujiena’s cultural and historical context.

Gaujiena is closely associated with Jāzeps Vītols, an outstanding Latvian composer, founder of Latvian professional music and of the Latvian Conservatory. This connection opens potential for high-quality cultural, musical, and educational initiatives.

Gaujiena New Manor is also the former school of Ojārs Vācietis, one of the most significant figures in Latvian literature, whose presence adds a strong intellectual and emotional dimension to the property.

This cultural and intellectual layering allows Gaujiena New Manor to be positioned not merely as real estate, but as a place of importance in Latvia’s cultural identity, offering investors strong branding and reputational potential.

MUNICIPAL VISION FOR DEVELOPMENT DIRECTIONS

(Indicative, non-binding)

Possible development directions include:

• a boutique hotel and event center;
• a SPA and health tourism complex;
• a creative industries, artists’, or researchers’ residence;
• a rehabilitation or social care center;
• a high-quality senior living and care complex.

The business model, concept, and financial structure remain the responsibility and competence of the investor.

INVESTMENT FRAMEWORK

The municipality anticipates:

• capital investment of approximately at least EUR 1 million;
• restoration of the building in accordance with cultural monument requirements;
• a long-term perspective on development and management of the property;
• cooperation in infrastructure, permitting, and local integration matters.

This investment level is considered a realistic minimum given the building’s technical condition, historical specifics, and the scope of necessary works.

INVESTOR ATTRACTION PROCESS

The municipality is implementing a gradual and professional market activation approach:

• no immediate auction is being organized;
• no exclusive rights are granted to any interested party;
• real estate professionals are currently invited to test market interest by introducing the project to their clients – family offices, specialized investors, funds, or private individuals with a long-term perspective.

Professionals have the opportunity to engage and prepare investors prior to the public auction, which is planned approximately for spring 2026.

This approach allows for flexibility, preparation of high-quality proposals, and ensures that the auction serves as a transparent final step rather than the primary investor attraction tool.

INFORMATION FOR REAL ESTATE PROFESSIONALS REGARDING THE PROCESS

This information is provided for market research purposes so that real estate professionals clearly understand the municipality’s intended process logic and potential involvement within the legal framework applicable to a public entity.

1. Market Research Phase (Non-binding)

At present, the municipality is not procuring brokerage services and does not assume obligations to commission such services. However, within the market research phase, real estate professionals are invited to inform the municipality on a non-binding basis by sending an official notice to pasts@smiltenesnovads.lv regarding investor interest they represent and who have been introduced to the Gaujiena New Manor project prior to the announcement of a public brokerage procurement.

Such information is used solely to assess market activity and does not grant any rights to remuneration or advantages in subsequent processes.

2. Brokerage Service Procurement Phase

Based on market activity, approximately two months prior to announcing the public auction, the municipality plans to organize a procurement for brokerage (investor attraction) services. The procurement will define the scope of services, remuneration mechanism, and the procedure for identifying the fact of investor attraction.

Real estate professionals applying for the procurement will be able to indicate investors they have worked with during the project preparation phase and reference the previously submitted market research notice as proof of investor introduction. The broker who actually ensures investor attraction and transaction completion will receive fair, market-aligned remuneration in accordance with procurement conditions and the concluded contract.

3. Public Auction Phase

The divestment of the property will take place via public auction. No exclusive rights or advantages will be granted to brokers or investors during the auction process.

4. Conditions for Remuneration

If, as a result of the public auction, the property is acquired by an investor:

• who was previously introduced to the project through a specific real estate professional;
• who has been identified within the brokerage procurement process;
• and with whom the municipality has concluded a brokerage services agreement,

then remuneration for investor attraction will be paid in accordance with the procurement conditions and the signed contract.

The previously submitted market research notice serves as verifiable proof of investor introduction but does not independently grant entitlement to remuneration without procurement and contract.

CONCLUSION

The Municipality of Smiltene County is seeking a long-term partner rather than a short-term buyer and is deliberately establishing a cooperation model that is professional, transparent, market-comprehensible, and motivating.

The municipality is open to confidential, non-binding discussions, site visits, and in-depth consultations with potential investors and their representatives.

Additional information, photo materials, legal framework, and municipal commitments are available on the municipality’s official website.

Sincerely,

Otārs Putrālis
Head of the Gaujiena New Manor Divestment Working Group
Deputy of the Smiltene County Municipality

E-mail:
gaujienaspils@smiltenesnovads.lv

Website:
https://smiltenesnovads.lv

Mobile:
+371 29477070

Address:
Dārza iela 3, Smiltene, Smiltene County, LV-4729

"Gaujiena New Palace", Smiltene Municipality, Gaujiena Parish

Financial Terms

• Estimated price: 141 000 euros

• Starting price: 141 000 euros

• Bidding increment: 500 euros

• Security deposit: 10 % of the estimated price (14 100 euros)

Property Data

• Located in Smiltene Municipality, Gaujiena Parish, Gaujiena, “Gaujiena New Castle”, cadastral designation 3648 005 0328.
• Total area: 1.6524 ha. Building (barn): 112.7 m². Building (school): 2028.0 m². Building (cellar): 86.6 m².

Auction Details

• Auction period: November 12, 2025 till December 12, 2025

• Platform: Electronic auction website – https://izsoles.ta.gov.lv

• Organizer: Smiltene Municipality

Main Obligations for the Buyer

Public Access Requirement

• The palace grounds must be made accessible to the public at least 4 times per month, for 6 consecutive hours each time.

• Interior access is not required.

Development Commitments

• Within 2 years: Slope stabilization of the palace hill (a technical project has already been prepared)

• Within 3 years: Restoration of the palace façade

• Within 5 years: At least 1 000 000 euros must be invested into the property

Encumbrances

• All development commitments (slope, façade, investments) will be registered in the Land Register as encumbrances and will be binding for future owners as well.

• The land parcel is subject to various protection zones and easements, including:

  • Cultural monument protection zone

  • Power line easements

  • Road protection zones

  • Landscape protection areas, etc.

Right of Repurchase

If the above development commitments are not fulfilled within the specified deadlines, the municipality has the right to repurchase the property for 100 000 euros, without compensating the buyer for any investments made.

The Municipality of Smiltene respectfully invites you to consider a unique investment opportunity — the development of the historic Gaujiena Manor complex, located in one of the most picturesque and culturally and historically significant sites in Latvia — on the banks of the Gauja River.

The municipality is offering:

• Gaujiena New Palace — a 19th-century historic building with a rich architectural heritage and broad potential uses (culture, hospitality, recreation, etc.);
• an ice cellar and a barn — additional outbuildings for utility purposes;
• a land parcel of 1.65 hectares.

Opportunities for cooperation with the municipality:

• Possibility to expand the property footprint — at the investor’s request, adjacent buildings of the manor complex may be added;
• Addition of further land to ensure the property directly borders the Gauja River, thereby significantly increasing development potential both scenically and commercially;
• Support for property development — possibility to establish a public–private partnership during the project development phase, for example for infrastructure improvements, access roads, lighting, or utility networks (depending on project scale).

Municipality’s long-term investment and commitment:

• Maintenance and enhancement of the park area — the municipality undertakes to maintain the remaining portion of the manor park to a high scenic and technical standard, thereby preserving the cultural-historical environment;
• Extensive cultural programme — we will continue to organize cultural events that attract visitors from across Latvia and beyond, thereby generating visitor flow to the property developed by the investor.

Potential benefits for the investor:

• A high value-added real estate asset with potential to become a tourism, cultural, or hospitality hub;
• Access to EU co-financed project opportunities, particularly in culture, tourism and entrepreneurship (the municipality can assist in preparing and supporting project applications);
• A cooperative partnership with the municipality, including possible flexibility on tax and administrative procedures within the framework of attracting investment and achieving long-term development goals;
• Opportunity to form strategic partnerships, developing both private business and public infrastructure (for example, outdoor environmental education, artist residency programmes, or health promotion initiatives).

We greatly appreciate your interest and believe that, through joint effort, the Gaujiena Manor complex can be restored into an outstanding example of the sustainable integration of historic heritage and contemporary needs.

We are ready to meet to discuss potential cooperation opportunities in detail and to tailor the proposal to your vision.

• After 1702, Gaujiena came under Russian rule. During the land reduction, the estates were confiscated, and everything belonged to the state.
• In 1745, the entire Gaujiena complex was gifted to the Schleswig-Holstein court marshal, Baron Bernhard Reinhold von Delvig.
• Baron Delvig had four sons, very energetic and talented men, but highly eccentric and wasteful. In 1780, the old marshal died, and the property was divided among three sons, as the eldest, Thur Karl, had entered service in Russia.
• In 1818, Adolf von Wulff acquired Gaujiena Manor.
• Around 1830, the manor house was built, and in 1838, an apartment and utility building for the estate workers was erected, featuring a driveway leading to the second floor. The southern wing of the building was adapted in 1886 for the needs of the Gaujiena Volunteer Firefighters’ Society, founded by von Wulff.
• In 1850, a new palace was constructed in the Classical style, with 52 rooms – featuring columns, walls decorated with gables and pilasters, ceiling paintings, and parquet floors. The steps of the palace’s main entrance are guarded by two reclining lions.
• Construction of the palace was completed by Baron Julius von Wulff, who was known for his great sense of humor. He considered Atzeli (Gaujiena) to be the center of Europe, and therefore named nearby farmsteads after major European cities – Berlin, London, Wiesbaden, Paris, and others.
• On September 7, 1872, the embalmed remains of Gaujiena’s owner, Julius von Wulff, who had been shot in Wiesbaden, were buried in the chapel (recently built and consecrated). The chapel was erected by Julius’s wife, Charlotte von Wulff. Later, other members of the von Wulff family were also buried there.
• The manor ensemble also included a brewery, brewmaster’s house, gardener’s house, greenhouse, ice cellar, stables, and the stable master–coachman’s house.
• In Gaujiena, on the right bank of the Gauja River, there are many springs, the most notable being at “Anniņas” (the former estate brewmaster’s house). Old residents of Gaujiena say this spring was once a sacred site for ancient Latvians. Around 1850, Baron Julius von Wulff had the spring encased in dolomite stone within a special chamber, and at the outlet he placed a lion’s head with an open mouth through which the water flowed. Since then, this ancient Latvian sacred spring has been called the “Lion’s Mouth.” The water is exceptionally clear, pure, and tasty. For centuries, the people of Gaujiena have drunk from this spring, which has given them strength, health, wisdom, and inspiration for noble deeds.
• In 1918, with the restoration of Latvia’s independence, the von Wulff family left Gaujiena and went to Germany.
• Today, the manor belongs to the Smiltene Municipality and is not intensively inhabited.

• The Architectural Complex of Gaujiena Manor (2748);
• Atzele Hillfort and Medieval Castle Ruins in Gaujiena (2739);
• New castle (2749);
• Manor House (2750);
• Gardener's House, later a Spirit Warehouse (2751);
• Stables and Stablemaster's House (2752);
• Kūts, vēlāk ugunsdzēsēju māja (2753);
• Barn, later a Firehouse (2754);
• Threshing Barn (2755);
• Ruins of the Warehouse (Wine Cellars) (2756);
• Granary (2757);
• Ice Cellar (2758);
• Park (2759);
• Lion's Mouth" Spring (2760); 
• Pump House (2761);
• The Architectural Complex of Zvārtava Manor (2762);
• Jāzeps Vītols Memorial Museum “Anniņas” and Park;
• Zvārtava Windmill.

Natural values of Gaujiena

• Kalamecu – Markuzu ravines;
• Nature Reserve “Gaujienas priedes”;
• Church Hill in Gaujiena;
• Gaujienas nature trail;
• Gaujienas Manor trail;
• Canoeing in river Gauja;
• Zvārtavas lake;
• Alkšņupīte, where karst sinkholes, also known as swallow holes, can be observed;
• Gaujiena 'Anniņu' Bat Cellars; 
• Gaujiena – A place with a magnetic aura in a protected landscape area.