IKEA's Lithuania spa resort project gets going

Baltic Business News reports that five years after Pinus Proprius, the Lithuanian real estate development and management arm of Swedish Ikea's property unit, launched a spa hotel development in seaside Palanga, the project will be sent back to the drawing board—good news for the project, meaning it's actually not dead.

The project stalled right after it was launched in 2008, after an investigation into the project's plan uncovered that the construction license had allegedly breached public interest. The public interest in this case was defending a 1995 Palanga's special heritage protection scheme that some of Pinus Proprius project's architectural features, such as the number of floors and built-up area density, conflicted with.

Pinus Proprius will now modify its 210-room spa hotel project and will need to apply for construction license anew. "At this moment we do not know how this will affect our project investment budget, neither do we have a new timeline for the project," said Kestutis Vedeckis, head of Pinus Proprius. "We need to amend the project and approve it once again, so there is no way we can say, in what way and how exactly it will be changed."

The future hotel operator, Estonian Legendijuhtimise (Legend Hotels) has stayed with the project all along.

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