CITYCON OYJ Press release 15 December 2016 at 14.00 hrs
Citycon has signed an agreement to acquire an office building in Bergen, Norway, for NOK 710 million (approximately EUR 78 million) from Tryg Forsikring A/S. The 19,000 sq.m. (gross leasable area) building is located next to Citycon’s Oasen shopping centre in the Fyllingsdalen area. The seller, Tryg, the second largest non-life insurance company in the Nordics, is the anchor tenant with their Norwegian headquarters located in the office building. The acquisition is expected to be closed in January 2017.
The acquisition creates new opportunities for Citycon to develop and expand the Oasen shopping centre from its current 31,500 sq.m. Citycon’s plans include adding approximately 11,000 sq.m. of leasable area by converting the main part of the two lowest floors of the office building into retail space as well as constructing a new part that further connects the two buildings. The conversion would significantly improve the circulation of the shopping centre and connect it better to the surrounding urban environment with a new main entrance while also giving room for new anchor tenants and a broader food and beverage offering. Tryg will remain as an anchor tenant with a 10-year lease with an extension possibility.
“Oasen fits perfectly with Citycon’s strategy to invest in urban shopping centres driven by daily needs and situated in locations with strong demographics. After acquiring the remaining 31% minority shares in Oasen in November last year, this acquisition is the logical next step to enable further development of the shopping centre towards creating another flagship within our Norwegian portfolio,” says Marcel Kokkeel, CEO at Citycon.
The Bergen area is growing rapidly and the population is expected to grow by approximately 11% to 310,000 by the year 2030. The city is planning to expand the Bergen Light Rail to Fyllingsdalen with a stop right outside Oasen, connecting it directly to Bergen city centre. The expected completion of the rail line is in 2023. The city is also planning increased housing in the proximity of Oasen, with approximately 5,000 new residential units to be built by 2030.
“Oasen is in the heart of the city’s new urban planning and we aim to make Oasen the town square and transportational hub for residents in the area. We clearly note Oasen’s attractiveness and that there is a great deal of interest in establishing shops and concepts. The previous (re)development and extension in 2014 was successful and tenant sales in Oasen have increased by 25% since 2012,“ says André Gaden, Commercial Director at Citycon.
The planned development work is expected to start in 2019, after the finalisation of a zoning process.
Pangea Property Partners acted as Citycon’s advisor in the acquisition.
Helsinki, 15 December 2016
For further information, please contact:
Marcel Kokkeel, CEO
Tel. +358 20 766 4521 or +358 40 154 6760
André Gaden, Commercial Director
Tel. +47 93 03 73 22
Citycon Oyj (Nasdaq Helsinki: CTY1S) is a leading owner, developer and manager of urban grocery-anchored shopping centres in the Nordic and Baltic regions, managing assets that total EUR 5 billion and with market capitalisation of over EUR 2 billion. For more information about Citycon, please visit www.citycon.com