IKEA is trying to buy a plot of land south of Tallinn to build the country's first full-size store, discussions about the sale of the land will take place later this month.
After six months of negotiations, Rae Municipality and IKEA settled on a 20-hectare plot in the village of Kurna as a potential location for an IKEA store. The municipality council will discuss the sale of the plot to IKEA on October 15.
The plot of land is approximately 20 hectares in size and alongside the Tallinn ring road in Kurna village. Kurna is about 12 kilometers from Tallinn.
Rae Municipal Mayor Mart Võrklaev said they held the first meeting with IKEA about six months ago and several plots of land have been considered. "But together we found that this could be the best place," he said.
At the parish's meeting on Tuesday, the municipal government decided to send a draft of the council's proceedings to Viljandi Real Estate OÜ, a developer representing the interests of the Swedish furniture group in Estonia.
Võrklaev said IKEA is ready to contribute to the infrastructure and community in the surrounding area and the negotiations were "extremely constructive." He also said the store moving to the area could increase the value of other plots of land the council owns.
"I sincerely hope the council will decide to support the sale proposal," he said.
IKEA Baltic Retail Manager Johannes Johannesson told ERR that IKEA is buying a plot of land in Estonia to open a full-size IKEA store.
Currently IKEA has an e-shop with an outlet in Tallinn which opened in August. Johannesson said the company had had a very successful start in Estonia, which exceed expectations.
"Now we have decided to take the next step and look for a full-size IKEA store," said Johannesson. He said so far there is no schedule for when the store will open.
Editor: Helen Wright