Finnish retail company Stockmann has confirmed the sales of two of its department store properties to Viru Keemia Grupp (VKG).
The total sale price amounts to approximately 87 million euros, with the group stating it will use the proceeds in full to reduce its secured restructuring debt.
The properties sold are located in Tallinn, Estonia, and Riga, Latvia.
It will continue its department store operations in the two locations through a long-term leaseback agreement made with VKG.
“We are pleased to have found a stable and reliable Baltic owner for the properties, that wants to develop the properties and our department stores in cooperation with us,” said Jari Latvanen, CEO of Stockmann, in a statement. “Our department stores will continue their operations as normal. Stockmann is a respected company with a strong position among our customers in both countries. The department stores have excellent locations in the city centres of Tallinn and Riga, which facilitates the sale of the properties.”
The Tallinn-based department store was built in 1996 by the group and continued to expand to eventually become one of the largest department stores in the Baltics at 22,980 square meters. Riga, built in 2003, stands at 15,965 square meters.