Finnish Industry Investment Ltd, or Tesi, the state-owned venture capital and private equity company, has made an investment in Finland’s first Outlet village.
“Sales in European Outlets is growing nearly 10% per year. Outlet villages create remarkable shopping tourism, and customers are willing to travel to spend time in them”, says Samuel Saloheimo, Investment Manager at Tesi.
“Zsar is expected to create over 400 new jobs. We anticipate that the investment will draw other business activity in the area as well, and have further indirect impact in the local economy”, Saloheimo argues.
“Our investors share our view of Zsar’s huge potential in creating the first genuine shopping destination in the Nordics. Zsar is perfectly located to attract 8.5 million Finnish and Russian consumers within a 2 hour catchtment area, as well as the exponentially growing number of Asian tourists who travel to Finland”, says Sami Vainiomäki, founder and CEO of Zsar.
“Zsar is situated halfway between Helsinki and St. Petersburg, and 300 metres from the busiest border crossing point between the EU and Russia, with nearly 3 million border crossings annually. Over 70% of Russians claim shopping to be their main reason to come to Finland. Asian tourists are increasingly travelling between Russia and Finland via the border crossing point, and they are looking for high-class shopping opportunities. However, our key target customers are Finns. The new direct E18 motorway from Helsinki to Zsar makes Finland’s first outlet village easily accessible to affluent, yet underserved locals”, Vainiomäki says.
Zsar’s construction is currently progressing fast, and the first buildings of the 12,000 sqm of Phase I are soon ready for shop fitting.