The central bank will sell property in Kuressaare to Arensburg Hotel

On Monday, the Executive Board of Eesti Pank decided to sell the bank’s two-building property in Kuressaare to Arensburg OÜ for 552,255 euros. Arensburg OÜ manages the Arensburg Hotel near the bank’s property.

Arensburg OÜ was the only bidder at the auction that started at the beginning of June. The initial asking price of the property at Lossi 6 was 500,000 euros.

“We hope to finalise the sale soon because continuing to use the Kuressaare property in the same way as before does not comply with the principle of an efficient organisation, which is the rationale behind the decisions of Eesti Pank’s Executive Board,“ said Ardo Hansson, Governor of Eesti Pank.

Earlier this year the Board had considered both selling and renting out the property, but as a result of interest to buy expressed during the Doors Open Day in May, it was decided to put the property up for sale. The Executive Board is also analysing various options for improving the use of the Maardu Manor House, but it will take time to reach any decision.

The property at Lossi 6, Kuressaare, is 1,089 square metres, with buildings on 701 square metres. There are two buildings on the property with a total of 886.7 square metres of floorspace: 611.8 in the main building and 274.9 in the outbuilding. In the main building, 93.5 square metres have been rented out as office space under an open-ended contract. The property is intended for commercial purposes and lies within the heritage protection area.


Background – The property in Kuressaare was once the building of the branch of Eesti Pank. Eesti Pank used the building from 1924 until it was nationalised by the Soviet authorities in 1940. The architectural heritage building was returned to the bank in August 1998 and the bank then had it renovated in order to preserve and restore the historical architectural value of the building. Eesti Pank started using the building in August 1999.

Source: Bank of Estonia

Estonian electronics sector on rise again

Following a degree of stabilisation in the Estonian electronics and electrical equipment industry last year, the sector reverted to growth in the first quarter of this year with production increasing by a tenth.

The output of electronic and electrical equipment increased by 1% year-on-year in 2012. The growth in sales and in export at current prices was respectively 3.8% and 4.2%, the Ministry of Economic Affairs and Communications said.

Both producer and export prices declined slightly in comparison with the previous year.

Computer, electronic and optical equipment accounted for three fourths and electrical equipment for one fourth of the sale of electronic and electrical equipment in 2012. Exports of the electronic and optical equipment branch increased by 3.5%, a considerably lower rate than the year before.

Export growth in the electrical equipment branch also slowed down but outstripped the increase in the electronics industry at 7.4%.

After two years of strong investment activity the volume of investment in the manufacture of electronic and electrical equipment contracted by a third in 2012.

Investments in machinery and equipment still held the biggest share at 80% of the total, but the amount of money invested was 40% smaller than the year before. Buildings and structures accounted for 15 % and means of transport, computers and land for the remainder of the investments.

The production of electronic and electrical equipment has been one of the fastest growing branches of industry in Estonia. Sales volumes of the companies increased four and a half times in the 2005-2012 period.

Source: Estonian Review

Estonia, a promised land of black sugar

Estonian sugar traders and tax authorities suspect that up to a half of sugar sold in Estonia may be either smuggled or used in VAT fraud, writes Äripäev.

The tax authority estimates that last year the state lost around EUR 0.2m from illegal sugar trade.

Sugar trader Alo Süvari from Montemar says that trade statistics shows that sugar imports to Estonia have decreased by a third in the last two years.

„I estimate that out of 40,000 tons of sugar imported to Estonia every year, black sugar could account for up to 15,000 tons,” he said, adding that his company has been offered to buy the company’s own sugar at prices that are lower than his sales price.

Sirje Potisepp, head of the Estonian association of food producers, says that black sugar market could be one reason why the price of sugar in Estonia is notably higher than in Europe.

Read more from BBN