Sale of Zsar shopping village faces delays as purchase payment postponed in Virolahti, Finland

The sale of the Zsar shopping village, which went bankrupt, has faced delays. “The payment for the purchase has been postponed, which is why the deal has not yet been finalized,” stated the administrator of the bankruptcy estate, attorney Matti Manner.

A bid for the upscale shopping center near the Vaalimaa border station was accepted in August, although the purchase price remains undisclosed. The buyer is a private Finnish individual who has established a company for this purpose. Efforts to sell the shopping village, located in Virolahti, have been ongoing for nearly two years following its bankruptcy.

Oma Säästöpankki, based in Lappeenranta, is the largest creditor of the bankruptcy estate, with the collateral valued at 22.1 million euros. The bank is the first creditor set to recover funds from the sale of the shopping village. For almost two years, the bank has also been covering over 10,000 euros monthly in property maintenance costs to keep the buildings and area in good condition for sale.

In 2023, the bankruptcy estate put Zsar up for auction, receiving a highest bid of 70,000 euros—a figure described by the administrator as “extremely disappointing.” However, new prospective buyers emerged post-auction, leading to on-site visits to inspect the buildings. The administrator has been in negotiations with these candidates, ultimately reaching an agreement with one.

Zsar shopping village opened its doors in November 2018 but declared bankruptcy in October 2022, as the COVID-19 pandemic and the war in Ukraine severely impacted its primary clientele—Russian shopping tourists. In previous years, hundreds of thousands of Russian shoppers crossed the nearby Vaalimaa border into Finland.