Citycon has signed an agreement to sell two shopping centres in Finland for approximately EUR 77 million to Nordic real estate investor NREP. According to the agreement, Citycon will divest shopping centre Arabia in Helsinki and shopping centre Duo in Tampere. The sales price is in line with the assets' latest IFRS fair values. The transaction is estimated to close during Q2/2019.
"This divestment reflects Citycon's strategy to focus on larger, urban and grocery-anchored shopping centres in the Nordics. We will use the proceeds from the divestment to strengthen our balance sheet and to finance the ongoing re-development projects. The divestment of Duo and Arabia is also a testimony that there is real estate investor demand for Nordic retail assets, which have a good tenant mix", says F. Scott Ball, Citycon's CEO.
"Both shopping centers are located in growing and developing areas, which need versatile everyday -services. Both shopping centers have strong visitor numbers, and our aim is to develop the centers through investments and through our retail-knowhow, to service residents even better and offer new high quality services, which have demand in the area", says NREP partner Mikko Räsänen.
Newsec acted as the Seller's commercial advisor in the transaction. Borenius Attorneys Ltd acted as the Sellers' legal advisor.
Partner, Capital Markets
Newsec in Finland
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Photos: © Kuviophoto
Citycon is a leading owner, manager and developer of urban, grocery-anchored shopping centres in the Nordic region, managing assets that total approximately EUR 4.5 billion. Citycon is No. 1 shopping centre owner in Finland and among the market leaders in Norway, Sweden and Estonia. Citycon has also established a foothold in Denmark.
Citycon has investment-grade credit ratings from Moody's (Baa3) and Standard & Poor's (BBB-). Citycon Oyj's share is listed in Nasdaq Helsinki.
NREP, founded in 2005, is a leading real estate investor and developer in the Nordics. The company manages real estate portfolio of EUR 4 billion and employs over 150 professionals in the Nordics, of which over 40 in Finland. NREP operates in all major real estate segments: residential, office, retail and logistics. In addition to owning real estate, NREP develops its properties actively in tight cooperation with its stakeholders.
Newsec – The Full Service Property House in Northern Europe – offers real estate owners, investors and tenants a full range of services within Advisory and Property Asset Management. Newsec was founded in 1994 and is today a partner-owned company with some 1 800 co-workers spread across the seven Nordic and Baltic countries. In 2018, Newsec opened a London office to assist international investors interested in the Nordic and Baltic region. Newsec has approx. EUR 45 billion under management and annually signs lease agreements of approx. 1 million square meters, manages transactions of some EUR 3.3 billion and does real estate valuations of underlying property worth almost EUR 165 billion. Thanks to large volumes, local presence combined with in-depth understanding of a range of businesses, Newsec has a unique expertise of the real estate market in northern Europe.
The market report Newsec Property Outlook has been published since 2001. Download the latest issue at www.newsec.com/npo