Estonia. TKM Kinnisvara AS
| Date of agreement: | 07 May 2024 |
|---|---|
| Country: | Estonia |
| Customer: | TKM Kinnisvara AS |
| Amount in EUR: | EUR 16.1 million |
| Maturity: | 14 years |
Project
The loan has been provided for TKM Kinnisvara AS, a subsidiary of Tallinna Kaubamaja Grupp (TKM Group) for financing the construction of a logistics centre at 1 Paemurru Street in Maardu, Estonia.
The logistics centre is built to serve the volumes of goods of the companies of TKM Group, primarily serving the cargo volumes of Selver, one of the largest retail store chains in Estonia, in its initial phase. Spanning a total area of 17,200 m², the new centre is planned to be completed in autumn 2024.
TKM Kinnisvara is part of the TKM Grupp (formerly Tallinna Kaubamaja Grupp), one of the biggest retail companies in Estonia accounting for approximately 10% of all retail trade in Estonia. TKM Grupp is part of a larger group, NG Investeeringud.
Fulfilment of NIB's mandate
Productivity:
The new logistics centre will enable further growth by increasing the warehouse capacity and enhancing the efficiency of the overall logistics chain.
The logistics centre is built to serve the volumes of goods of the companies of TKM Group, primarily serving the cargo volumes of Selver. Selver is one of the largest retail store chains in Estonia, but currently most of its logistics is not centralised. With a significant portion of Selver’s food items sourced locally, improving efficiency might provide benefits across the wider value chain.
This will heighten market competition in Estonia, where groceries make up about 21% of household spending, surpassing both the EU average of 17.4% and the Nordic country average of 15.1%. This increased competition could lead to efficiency gains for consumers and suppliers, as competitive pressures drive improvements in the market.
Environment:
The new logistics center is striving to attain a BREEAM Excellent green building certification, which ranks as the second highest certification class. The building’s targeted energy class is A. The building is most likely to be aligned with EU taxonomy once construction work is done.
Sustainability summary
There are no environmental concerns identified in relation to the project.
