Advising VKG on the acquisition of two Stockmann stores

PwC helped to close a major deal by advising VKG Invest OÜ, the investment arm of an energy conglomerate Viru Keemia Grupp (VKG), on the acquisition of Stockmann department store properties in Tallinn and Riga for €87 million.

PwC Estonia supported VKG Invest by providing financial and tax due diligence and giving structuring advice.

The PwC team contributing to a successful deal included PwC Estonia’s transaction advisory experts Teet Tender, Raul Ruubel, Egert-Gerret Kreek and Kristjan Jalakas and PwC Estonia’s tax experts Tanja Kriisa, Martin Tois, Oliver Keller and Hannes Lentsius.

Stockmann will continue operating department stores as a long-term tenant in both Tallinn and Riga properties.

The Tallinn branch of Stockmann was opened in 1996, expanding four years later. The Riga department store was opened more recently, in 2003. The Tallinn store hosts 22,280 sq. m of retail space; the Riga outlet, 15,965 sq. m.

VKG Invest is an independent investment entity of VKG, and invests in areas, primarily real estate, not directly related to the group's core business, namely oil shale industry, power generation, and public utility companies.

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• ERR