Kaubamaja renews Viru Keskus lease for seven years
Tallinn department store Kaubamaja has renewed the lease on its Viru Keskus site for another seven years, though the iconic store still awaits the go-ahead from Tallinn City Government to carry out reconstruction work.
Kaubamaja AS, a subsidiary of Tallinna Kaubamaja Grupp AS which has been a tenant for 16 years so far, inked the deal with Viru Keskus AS on Wednesday.
"[The lease extension] gives us the confidence to implement innovations in the sales worlds at the Viru Keskus premises," said Erkki Laugus, Kaubamaja AS board member.
Construction work on a new department store building is still awaited, and is waiting on a Tallinn City Government decision, according to a Kaubamaja spokesperson.
The architectural competition for the complete renovation of the properties of Kaubamaja site at Gonsiori 2/ Rävala pst 6 led to a winning design by architectural firm DAGOpen OÜ being selected in November 2017.
Kaubamaja AS has a total sales area of 16,000 square meters within its city center location, about half of which is at the Tallinna Kaubamaja Group's disposal as retail space.
The original Kaubamaja building was opened in 1960 after a five-year construction period, in time to "celebrate" the 20th anniversary of the formation of the Estonian SSR.
Download the ERR News app for Android and iOS now and never miss an update!
Editor: Andrew Whyte