Development projects


A core part of Citycon's strategy is to actively develop its shopping centres either via (re)developments or extensions. The objective is always to increase the commercial attractiveness and competitiveness of the shopping centre and thereby generate stronger rental growth while consolidating market value.

Key criteria

  •  ≥ 150 bps over required valuation yield
  • 50% pre-leasing target

    Investments in (re)developments of approx. EUR 150 million p.a. on average.
     

Iso Omena


Iso Omena is growing in a two-phase development and expansion project, and it will become one of the largest shopping centres in Finland. The first extension phase was completed in August 2016. The extended Iso Omena hosts a wide range of grocery stores, plus many fashion, leisure and interior design shops. It offers excellent public and private services, along with entertainment and recreation: for example, the largest Finnkino cinema in Espoo will open in Iso Omena in spring 2017. The Iso Omena restaurant world, M.E.E.T. (Meet, Eat, Enjoy, Together) will house 50 different cafés and restaurants.

The project includes renovating part of the existing shopping centre, and the extension will be fully integrated with the new Matinkylä metro and bus terminal. Iso Omena’s catchment area is expected to continue its strong growth in the following decade, and the average income and purchasing power of the area’s residents are high. Anchor tenants in the extension: Finnkino cinema, library, health centre, Zara, Lidl, H&M.  

 

Project information  
Location Helsinki area, Finland
Citycon's expected gross investment, MEUR1) 270.0
Gross leasable area (GLA), before and after (sq.m.) 63,300/101,000
Completion  Q3/2016 and Q2/2017

1) The number in brackets reflects Citycon's total investment in the project including agreed buyouts of JV shares.

 

 


 

Porin Asema-aukio

Construction of a new campus for Satakunta University of Applied Sciences in Porin Asema-aukio. The project will secure a strong long-term tenant for the non-core property and solve a large structural vacancy.

Project information

 

Location Pori, Finland                              
Citycon's expected gross investment, MEUR 40.0
Gross leasable area (GLA), before and after (sq.m.) 18,800/23,000
Completion target Q2/2017

 


 

Mölndal Galleria

 

Citycon and NCC Property Development have entered into a joint venture to develop Mölndal Galleria in Gothenburg. An outdated retail property was demolished and a new centre is being built in the same location. Zoning plan has been approved and the construction  started in August 2015. Mölndal Galleria will be a modern urban city gallery focusing on daily necessities. The centre will have about 70 shops, restaurants and service units. Pre-leasing is ongoing.   Further information on the project can be found here 

Project information  
Location Gothenburg, Sweden
Citycon's expected gross investment, MEUR1) 60.0 (120.0)
Gross leasable area (GLA), after (sq.m.) 24,000
Completion target  Q3/2018

1) The number in brackets reflects Citycon's total investment in the project including agreed buyouts of JV shares.


 

Straedet


A new, urban open-air shopping centre is being built by TK Development in the heart of Köge in the greater Copenhagen area. Straedet will be anchored by two grocery retailers and a cinema and will comprise around 35 retail units, cafés and restaurants. Citycon does not invest in the (re)development project but will acquire the property at a fixed yield at completion in 2017.

Project information

 

Location Copenhagen, Denmark
Citycon's expected gross investment, MEUR 75.0
Gross leasable area (GLA), after (sq.m.) 19,000
Completion Q1/2017 and Q4/2017

 

 


 

Projects under planning


Lippulaiva

Lippulaiva is located in the heart of the rapidly growing Espoonlahti area and has established its place as a strong, local shopping centre. The new metro station of the second phase of the Länsimetro extension and the terminal for connecting traffic will be located under the shopping centre. The new Lippulaiva will host around 80 different shops, cafés, restaurants and services in addition to municipal services and health care facilities. The service offering will have a strong focus on groceries and other necessity driven retail. 

Project information  
Location Finland, Espoo / The capital area
Citycon's expected gross investment, MEUR 200
Gross leasable area (GLA), before and after (sq.m.) 19,200/42,000 
Completion target  2020

 


 

Tumba Centrum

Citycon is also planning an extension of Tumba Centrum, which will be integrated with a new bus terminal.  Citycon's    plans include retail, health care and municipal services as well as    additional parking . Zoning has been approved and pre-leasing is ongoing.

Project information
Location Stockholm, Sweden
Citycon's expected gross investment, MEUR 50
Gross leasable area (GLA), before and after (sq.m.) 23,400/32,000
Completion target 2020