Scandic to exit hotel business in Estonia

20.02.2013, 09:52

Scandinavian hotel operator Scandic Hotels continues its exit from the Estonian hotel business, writes Äripäev.

Last month the company announced having sold operating rights to the Rannahotell in Pärnu and will this week sell the assets and operating rights also to Scandic Palace in Tallinn to Eften SPV 11 which is half-owned by real estate fund Eften Kinnisvarafond and half-owned by businessman Vello Kunman.

The parties did not disclose the purchase amount, but it is estimated that it was somewhat higher than EUR 3.1m which is the balance sheet value of Palace Hotel.
After the transaction is cleared by the competition authority the deal is expected to be closed in April.

Eften Kinnisvarafond is owned by LHV, Danske pension funds, Ambient Sound Investments and others. The company owns several office buildings in Tallinn and Mustika shopping centre, the Uku mall built on the territory of the former Viljandi juvenile  prison, the Rakvere police and rescue build, a K-rauta store building in Võru, an office building in Tartu, etc.

Vello Kunman is the Estonian businessman who owns Esraven Ltd which in turn owns Silikaat Group and Järve Shopping Centre. Äripäev estimated Kunman’s assets at EUR 54m which makes him Estonia’s 36th richest businessman.