EfTEN ABC4 OU, uniting several Estonian investors, has agreed to acquire the Kristiine Center in Tallinn from Finnish listed company Citycon Oyj.
EfTEN ABC4 OU belongs to Ivar Vendelin, Anders Anderson, Taavet Hinrikus, Kristjan Rahu, Priit Koit, Toonart Raask, EfTEN Real Estate Fund 5, Tonu Uustalu, and Viljar Arakas. EfTEN Real Estate Fund 5 is the largest single investment of the listed EfTEN United Property Fund, which means that close to 6,000 Estonian retail investors will become co-owners of the shopping center.
A special asset management company, in partnership with EfTEN Capital, Ivar Vendelin, and Anders Anderson, will manage the center. The day-to-day operations will be the responsibility of EfTEN.
“With Estonian investors, the Kristiine Center will get a strong owner, for whom it’s not just another investment, but as residents of Tallinn we perceive higher responsibility for the development of a vital location in central Tallinn,” said Viljar Arakas, Chairman of the Management Board of EfTEN Capital. “The Kristiine Center is a very well-known brand and enjoys high popularity, with six million visitors per year. The acquisition of the Kristiine Center is one of major transactions in 2024, which confirms that Estonian investors are continuously ready to contribute.”
“We can see a market situation where Estonian capital has opportunities and courage to acquire companies of importance for Estonia,” said Ivar Vendelin, investor and partner of the newly-founded asset management company. “Good to see that a group of respected investors was quickly set up and I’m confident that it would not remain our last step. I’m glad that a thought, which popped up early in the summer during a conversation with [my] good friend Viljar at the Niitvalja golf course, has come to successful fruition.”
EfTEN ABC4 OU and Citycon Oyj signed a binding agreement for the sale, and the transaction is expected to close before the end of 2024, upon conclusion of the proceedings of the Competition Authority.
A syndicate consisting of SEB bank and Swedbank is financing the transaction. RASK Attorneys-at-Law is advising the buyer.
The Kristiine Center is one of Estonia’s most popular shopping centers, with 45,300 square meters of gross leasable area on two floors. The center was opened in 1999 and underwent a complete renovation in 2019. It contains approximately 120 shops, service points, and eateries, and its anchor tenants are Prisma, H&M, Sportland, Reserved, Rademar, Apollo, O’Learys, New Yorker, and Jysk.
