The Prisma chain of supermarkets planned to open a new shop in Saue this year but price advance has caused the developer to ax the project, with the chain now looking for a new location for the supermarket.
The Saue Municipality said on Monday that Saue EPT, which is the developer for the Prisma supermarket building in the city, has decided to terminate the project because of economic risks.
"We could not foresee such risks in a normal economic situation. The rising Euribor rate started directly affecting our cash flow, with banks reverting to tough loan conditions," said Harry Pajundi, spokesperson for Saue EPT.
Pajundi said that the project would have needed loan money and it is more sensible to freeze it until August. "Unfortunately, our proposal did not fit in with Prisma's plans."
"The development has stalled, and we are working on finding another contractor. We want to open a supermarket in the area," head of communications for Prisma Kristiina Tamberg said.
Prisma wanted to open its store this year, while what comes next will depend on the new developer. The chain also wants to open a shop in Maardu.
Saue EPT plans to finish construction of the building and has plans for the future which it will unveil come fall.
Editor: Marcus Turovski