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SEB Banka to lend €35m for building IKEA store in Riga

Latvia’s SEB Banka and Verus Praedium company, developer of the international home furnishing products brand IKEA in Latvia have signed a long term loan agreement of €35.4 million for building the IKEA store near Riga, the bank told the press on March 7.

The company plans on starting construction in Stopini, around eight kilometers east of downtown Riga this summer. The commercial space will be 34,000 square meters. The store will be opened next fall and is expected to add around 300 new jobs.

The first IKEA store in Baltic states was opened in 2013, near Vilnius airport in Lithuania. In terms of size the store in Riga will be larger than IKEA Vilnius by about a third, and will offer a wider range of merchandise. If needed, it will be possible to increase the area of Riga store by about 6,000 square meters.

The company also plans to establish several merchandise pick-up points outside Riga, where customers will be able to collect their IKEA purchases.

The Swedish furniture and household goods company IKEA was founded in 1943 by Ingvar Kamprad. Presently IKEA manages more than 400 stores in almost 50 countries across the globe, and around 10 percent of stores are managed by franchise companies.

Verus Praedium was founded in 2015 and belongs to Dutch-registered FE Corporation B.V.

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