TALLINN - Estonian real estate developer Pro Kapital Grupp announced that the management board is calling for an extraordinary general meeting of shareholders to decide on the approval of the issuance of new shares by Tallinna Moekombinaat, a company that belongs to the concern, in order to include extra capital that would enable progress with the giant shopping center planned at Peterburi Rd 2 in Tallinn, not far from the Tallinn Airport, reports Postimees Online.
The company told the Tallinn stock exchange that the company’s board feels that the market conditions to start with the development of the new shopping center seem very attractive, due to the demand for retail space in Tallinn and the changed situation of the competitive projects.
Tallinna Moekombinaat has found an interested party who is willing to invest in the equity of the shopping center developer 27,999,000 euros, and additionally grant an unsecured loan in amount of 9,003,600 euros. Nevertheless, the interested party has not yet made a binding commitment to make the investment. In case all funds will be raised, the new investor will receive a participation of approximately 47.63 percent of the shopping center developer Tallinna Moekombinaat.
The extraordinary general meeting of Pro Kapital shareholders shall take place on March 14.
According to initial plans of the center, which has been in preparation for several years, the new center would have 55,000 sq. meters of rentable space and should house at least 200 different sales and service venues. The city of Tallinn has already started a process of extending the city’s public tram line from the current final stop in Peterburi Rd to the new center.