Citycon Acquired Shopping Centre Arabia in Helsinki

Stock exchange releases - 4 April 2012


 Citycon has today acquired the shopping centre Arabia in Helsinki, Finland, for EUR 19.5 million from Tapiola Group. Shopping centre Arabia is located in the fringe of Helsinki’s city centre, some four kilometres North-East on a lot owned by the City of Helsinki. The shopping centre has a gross leasable area of approximately 14,000 square metres, with 11,400 square metres of retail premises. The net initial yield on the acquisition price is around 6 per cent but it is expected to grow rapidly to 7 per cent after planned commercial development actions. 



 Arabianranta is former industrial area that has been converted into an urban residential and campus area during past decades. Round 13,000 inhabitants live in the Arabianranta area and thousands of homes have been built there during the last 10 years and further homes are under construction. Rich in cultural history and modern community living the Arabianranta area at the moment employs 6,000 people and offers 13,000 students a place to study. It is a part of Helsinki’s tram and bus network.

 

 “The excellent location of the centre with good public transportation connections and its situation among a demographically strong, urban living, working and studying environment brings growth potential in daily footfall. Our aim is to reach this potential with active development: we will both increase and diversify the offering of the centre. The centre fits Citycon’s strategy like a glove: we invest in shopping centres located in growing city centres,” says Michael Schönach, Head of Citycon’s Finnish Operations. 



 
  
   
  
  
   
   
  
  
   
   
  
  
   
   
  
  
   
   
  
  
   
   
  
  
   
   
  
  
   
   
  
  
   
   
  
  
   
   
  
 

    Arabia Shopping Centre in Figures

    Gross leasable area, sq.m.

    approx. 14,000

        Retail premises, sq.m.

    approx. 11,400

        Other, sq.m.

    approx. 2,600

    Number of shops

    31

    Built/redeveloped in

    Built 1960

    Redeveloped 2002

    Sales, EUR million, 2011

    48.2

    No. of parking spaces

    326 heated spaces

    Anchor tenants

    K-Supermarket, S-Market, Tarjoustalo, Alko, Chico’s, pharmacy

    Economic occupancy rate, %

    93


 

 Citycon financed the acquisition from its existing credit facilities. The acquisition will increase rental income and improve the profitability of Citycon’s Finnish operations. It is also expected to be earnings per share accretive.

 

 Following the acquisition, Citycon owns 36 shopping centres and 41 other retail properties in Finland, Sweden, Estonia and Lithuania. In addition, the company manages and leases two shopping centres without owning them. In Finland, Citycon owns a total of 23 shopping centres after the acquisition.

 

 Helsinki, 4 April 2012

 

 CITYCON OYJ

 Marcel Kokkeel

 CEO

 

 For further information, please contact:

 Michael Schönach, Executive VP, Finnish Operations

 Tel. +358 40 356 0909

 michael.schonach@citycon.fi

 

 Distribution:

 NASDAQ OMX Helsinki

 Major media

 www.citycon.com

  

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