CITYCON OYJ Stock Exchange Release 26 June 2006 at 2.00 p.m.
Citycon Acquires Jakobsberg Shopping Centre in Greater Stockholm Area
Citycon has signed today an agreement to purchase the entire stock of BHM
Centrumfastigheter AB, which owns 100% of the Jakobsbergs shopping centre in the
municipality of Järfälla, Greater Stockholm Area, Sweden. The total debt-free
purchase price is approximately SEK 970 million (approx. EUR 104.5 million)
subject to closing adjustments, and the initial net yield of the investment is
6.0 per cent. The deal is subject to customary closing conditions such as
municipal approvals and is expected to close at around the end of August. This
acquisition will strengthen Citycon's market position in the shopping centre
sector in Sweden.
The Jakobsberg shopping centre is the commercial centre of the municipality of
Järfälla, located in the north-western part of the Greater Stockholm Area. The
centre offers versatile services to its clientele, with supermarket goods
provided by Coop and Axfood. Specialty stores include H&M, Stadium, Lindex,
KappAhl, Contacta Eyewear, Klackenbergs böcker och papper, MQ and Hemtex. The
service package is complemented by various restaurant and café services, and
public health and library services including premises for exhibitions. In 2005, a
total of around 5.9 million customers visited the centre, and the total turnover
of the stores and restaurants was around SEK 611 million (around EUR 66.2
million). There are 76 stores and restaurants in the centre.
The leasable area in the Jakobsberg centre totals around 67,000 square metres, of
which around 26,000 square metres are retail premises, 9,000 square metres office
premises and 5,500 square metres storage space. The company also owns 351
apartments with a combined area of around 26,600 square metres. The centre has
over 1,300 parking spaces, and its occupancy rate is 98 per cent.
Petri Olkinuora, CEO of Citycon, commented: "We are pleased to announce our
biggest acquisition in Sweden so far. Following this acquisition, and the
acquisition of Stenungstorg shopping centre announced in May, Citycon will own
and manage eleven centres in Sweden once the closing of these acquisitions will
have taken place. We will continue to focus on well located, value enhancing
investments where the competitive advantages of Citycon can be utilized to
maximize property value."
For more details on the purchased property, please visit the company's homepage
or www.jakobsbergscentrum.se.
Helsinki, 26 June 2006
CITYCON OYJ
Board of Directors
Further information:
Petri Olkinuora, CEO, mobile +358 400 333 256
Kaisa Vuorio, Head of Shopping Centres Division, mobile +358 500 667 227
Citycon is the Finnish market leader in the shopping centre business. It owns a
total of 18 shopping centres in the Helsinki Metropolitan Area and other regional
centres of Finland, and nine shopping and retail centres in the Stockholm and
Gothenburg regions in Sweden. In the Baltic countries, Citycon owns the Rocca al
Mare shopping centre in Tallinn, Estonia and the Mandarinas shopping centre in
Vilnius, Lithuania.
In addition to the shopping centres, Citycon owns 127 supermarket and retail
premises in Finland.
Distribution:
Helsinki Stock Exchange
Main media
www.citycon.fi