Citycon to Acquire a Portfolio of Three Shopping Centres in Norway

News provided by

Citycon Oyj

05 Feb, 2020, 17:42 GMT

HELSINKI, Feb. 5, 2020 /PRNewswire/ -- Citycon has today agreed to acquire the remaining interest in Sektor Portefølje II AS, a portfolio of three shopping centres in Norway. The transaction consists of three assets, Stovner Senter, Torvbyen and Markedet. Citycon has managed the shopping centres since 2015 and also owned 20% of the portfolio. The transaction cost amounts approximately to EUR 145 million, of which Citycon assumes existing debt of approximately EUR 135 million and pays a cash purchase price for shares of approximately EUR 10 million. After the transaction, Citycon has 100% ownership of the portfolio. The transaction is expected to close on 6 February 2020.

In conjunction with this transaction an agreement has been signed on 3 February 2020 to sell Markedet with the price of approximately EUR 12 million. The closing is expected to take place by the end of the February 2020. 

"With the acquisition of this portfolio, we will strengthen our position in Norway. We see value in this portfolio and are in the process of selling Markedet, the smallest of the three assets. We have owned and managed the centres since 2015 and we know the assets well. With our extensive knowledge and full ownership of these assets, we believe we can create value for our shareholders," says F. Scott Ball, CEO at Citycon.

Further details of purchased assets:

                                   

Stovner

                                   

Torvbyen

                                   

Markedet

                                               

                                   

Location

                                   

Oslo, Norway

                                   

Fredrikstad, Norway

                                   

Haugesund, Norway

                                               

                                   

GLA, sq.m.

 

43,000

 

14,100

 

10,700

 

                                   

Tenant Sales, MNOK

 

805

 

300

 

215

 

                                   

Occupancy rate, %

 

89.5

 

95.5

 

93.2

 

CITYCON OYJ  Inside Information  5 February 2020 at  19:30 hrs

Citycon Oyj is a leading owner, manager and developer of urban, grocery-anchored shopping centres in the Nordic region, managing assets that total approximately EUR 4.4 billion. Citycon is the number one shopping centre owner in Finland and among the market leaders in Norway, Sweden and Estonia. Citycon has also established a foothold in Denmark.

Citycon Oyj has investment-grade credit ratings from Moody's (Baa3) and Standard & Poor's (BBB-). Citycon Oyj's shares are listed on Nasdaq Helsinki Ltd. stock exchange.

For more information about Citycon Oyj, please visit www.citycon.com.

CONTACT:

CITYCON OYJ

F. Scott Ball
CEO
Tel: +46-(0)-73-063-5190
scott.ball@citycon.com 

Eero Sihvonen
Executive VP and CFO
Tel: +358-50-557-9137
eero.sihvonen@citycon.com

This information was brought to you by Cision http://news.cision.com

https://news.cision.com/citycon-oyj/r/citycon-to-acquire-a-portfolio-of-three-shopping-centres-in-norway,c3028089