Bid accepted for Zsar shopping center near Vaalimaa border crossing in Finland

A bid has been accepted for the Zsar shopping center, located near the Vaalimaa border crossing. The information comes from the estate administrator and lawyer, Matti Manner. He stated that while the offer approved by the creditors’ meeting is disappointingly low and far from Zsar’s investment value, it is nonetheless higher than previous bids and aligns with current market prices. Manner did not disclose the exact amount.

In the online auction held last autumn, the highest bid for the shopping center, located in Virolahti, was only €70,000. There is still a month-long period for appeals following the creditors’ decision, after which the sale can be finalized. The buyer is a private Finnish individual who plans to establish a company to acquire the shopping center under its name.

The Zsar shopping center went bankrupt at the end of 2022 due to the impacts of the COVID-19 pandemic and the war in Ukraine, which severely affected its primary customer base: Russian shoppers. By the end of 2023, Finland closed all border crossings along its eastern frontier to prevent unauthorized entries.

The largest creditor in the bankruptcy estate is Oma Säästöpankki, based in Lappeenranta, which holds a lien valued at €22.1 million. According to the bank’s Deputy CEO, Markus Souru, all loans associated with the project have already been written off, so the sale does not elicit particular emotions for the bank. They are first in line to recoup their investment from the sale while facing substantial annual costs related to the upkeep of the vacant property.

Souru emphasized that it was a well-considered lending decision meant to promote the vitality of Eastern Finland, adding that hindsight is a clearer perspective. Recently, the bank has been under scrutiny due to an investigation involving alleged manipulation of its credit processes by a former senior official.