Stockmann sells department store properties in Tallin and Riga
Finnish retail chain Stockmann has sold its department store properties in Tallinn and Riga to Viru Keemia Grupp in an €87 million deal.
The proceeds from the sale will be used to reduce guaranteed restructuring debts.
Stockmann will continue to operate the stores in the two cities through long lease-back agreements with the new owner.
The company’s chief executive Jari Latvanen said: “We are pleased that a stable and reliable Baltic owner was found for the properties, who wants to develop our properties and department stores in cooperation with us. Our department stores will continue to operate normally. Stockmann is a respected company and we have a strong position among our customers in both countries. The department stores in Tallinn and Riga have excellent locations in the city centres, which helped the sale of real estate.”
Stockmann built the Tallinn department store property in 1996 and then expanded it from two storeys to five. The shop has a net rentable area of 22,980 square metres. Meanwhile, the Riga store was built in 2003 and spans 15,965 square metres.
Sten Pisang, chief executive of VKG Invest, said: “We are excited to work with Stockmann in the Baltics. Both landmark properties are in exceptionally good locations in the growing capitals of Estonia and Latvia, and we look forward to exploring further investment opportunities that support Stockmann’s core business.”
