Zsar Outlet Village

History

2023: Sale of business for 70 thousand euros

The Zsar Outlet Village shopping complex, located in Finland near the border by Russia, was sold for 70 thousand euros, although 35 million euros were invested in its construction. The results of the auction became known at the end of November 2023.

Bankruptcy trustee Matti Manner, who was selling the bankrupt shopping complex, called the result of the auction "the deepest disappointment." The largest amount for the object was offered by a person engaged in the tourism business. The buyer's name has not been disclosed.

Zsar Outlet Village

Zsar Outlet Village is located 500 meters from the Vaalimaa border checkpoint (Torfyanovka from the Russian side) and was aimed mainly at shopping tourists from St. Petersburg and other cities of Russia. The cessation of tourist flow from the Russian Federation and the closure of the checkpoint on the Finnish-Russian border deprived this business of meaning, the Finnish television and radio company Yle notes.

Oma Saastopankki, the bank that owns the mortgage on the village, wanted to sell the property as quickly as possible because of a reluctance to pay the costs of maintaining the empty premises, Manner said.

The area of ​ ​ the Zsar Outlet Village shopping complex is 12 thousand square meters. m. The facility is designed for 60 stores.^[1]

2018-2022

Zsar Outlet Village opened in 2018. In 2020, the owners expected to attract up to 1 million tourists, in particular from Russia, but in March the trading quarter had to be closed due to the COVID-19 coronavirus pandemic. Even then, Yle wrote that the company was counting on restoring the flow from Russia, since the Russians spent an average of €130-140 on purchases per person, and the Finns - €50.

The problems worsened after February 24, 2022: Finland closed the entry to tourists from Russia, banned travel on cars with Russian numbers and began to block the checkpoint on the border with the country. Store downtime negatively affected not only the profitability of the project for investors, but also employees, some of whom were left without work.

Notes