Merko Ehitus has acquired the holding in the company OÜ Tähelinna Kinnisvara

AS Merko Ehitus has acquired the 100 percent holding in the company OÜ Tähelinna Kinnisvara, previously owned by AS E.L.L. Kinnisvara. The purchase price of the company was EEK 51.9 million, paid to the seller in full upon the transfer of the holding. The company Tähelinna Kinnisvara was established in 2001. Its principal activities are property development and property investments.

The company owns a six-storey office building at Järvevana tee 9g in Tallinn. The building, completed in 2003, has an area of 4 542 sq. m and houses the headquarters of AS Merko Ehitus.

On 19 Oct 2009, an unrelated party submitted an offer to AS E.L.L. Kinnisvara to purchase either the property at Järvevana tee 9G in Tallinn or the company OÜ Tähelinna Kinnisvara (the owner of the property) at the market price of EEK 58 million. The price of the holding was calculated by adding up the cost of the property and the balance of the company’s current assets and liabilities.

In the opinion of the management of Merko Ehitus, the suggested price of EEK 12 770 per gross sq. m was a bargain and the company decided to exercise its right of first refusal, stipulated in the lease agreement and arising upon the potential transfer of the holding.