Citycon acquired today the Högdalen Centrum shopping centre in Stockholm for SEK 207.5 million (approximately EUR 23.1 million) from Centeni AB, controlled by The Royal Bank of Scotland. Högdalen Centrum is located in southern Stockholm, some five kilometres from the city centre. It has a gross leasable area of approximately 14,100 square metres, with 11,000 square metres of retail premises. On the acquisition date, the net initial yield on the investment is approximately 6.5 per cent before planned maintenance investment.
“Locally, Högdalen Centrum is a very well-known shopping centre providing local services. It is situated by a metro station and bus terminal, in the middle of a dense and growing residential area. Citycon owns two other shopping centres in the neighbouring area: Liljeholmstorget Galleria and Fruängen Centrum. As the developer, owner and operator of these centres, we expect to benefit from notable synergies”, says Ulf Attebrant, Citycon’s Vice President, Swedish Operations.
Almost 40,000 inhabitants live in Högdalen Centrum’s immediate catchment area. Its excellent location by transport connections brings daily shopping to the centre, since 12,000 people pass through the metro and bus terminal every day. For Citycon, a shopping centre’s location is an important criterion; investment in shopping centres located in city centres or other dense urban areas is a key part of the company’s efforts toward sustainable development.
“We are delighted about this purchase and see plenty of scope for developing Högdalen Centrum and its revenues. Our aim is to strengthen Högdalen Centrum’s position further, in order to better serve the centre’s growing customer base,” continues Ulf Attebrant.
Högdalen Centrum in figures
Gross leasable area, sq.m.
for retail premises, sq.m.
for offices and storage premises, sq.m.
Number of outlets
Sales, EUR million, 2010
No. of parking spaces
ICA, MatDax, Lindex, Dressman, Apoteket
Economic occupancy rate, %
Citycon financed the acquisition from its existing credit facilities. This purchase will increase rental income and improve the profitability of Citycon’s Swedish operations. It is also expected to be earnings per share accretive.
Following the acquisition, Citycon will hold – either under its ownership or lease – a total of 36 shopping centres and 46 other retail properties in Finland, Sweden, Estonia and Lithuania. In Sweden, Citycon owns a total of nine shopping centres.
Helsinki, 31 May 2011
For further information, please contact:
Marcel Kokkeel, CEO
Tel. +358 40 154 6760
Ulf Attebrant, Vice President, Swedish Operations
Tel. +46 703 415 317
NASDAQ OMX Helsinki