Citycon has signed a joint venture agreement with NCC Property Development for the (re)development and letting of Mölndals Galleria. An existing old retail property is planned to be demolished and a new centre with around 25,000 square metres of leasable area is being built in the same location. The project is being developed in co-operation with the municipality of Mölndal, from which Citycon and NCC Property Development intend to acquire the existing retail property.
The centre will have about 70 different shops, restaurants and service units. Mölndals Galleria will be a modern urban city gallery focusing on daily necessities. It will be anchored by a grocery store and other day-to-day services. The construction of the new shopping centre is expected to start during 2015, after the finalization of an ongoing zoning process, and will open to the public in early 2018.
Both Citycon and NCC will participate in the (re)development project and Citycon intends to purchase NCC’s share after the project is completed. Citycon’s total investment is estimated at around EUR 120 million.
“Mölndals Galleria fits perfectly with Citycon’s strategy to invest in urban shopping centres driven by daily needs and situated in locations with strong demographics. This investment will further enhance our position as one of the shopping centre industry leaders in Sweden and the whole Nordic region, whilst also increasing the share of Sweden within our portfolio,” says Marcel Kokkeel, CEO of Citycon.
Mölndal has a population of 61,000 and approximately 230,000 people live within a ten-minute drive from the centre. Mölndal Galleria will be located next to a strong public transport hub; the second busiest in the Gothenburg area after the central station, also connecting Mölndal seamlessly with Gothenburg city center. Gothenburg is the second fastest growing city in Sweden after Stockholm. The population in Gothenburg is expected to grow by around 17 per cent by 2030, resulting in a total of 1.2 million people.
“Our aim is to develop a living and attractive area which serves the needs of visitors and the growing number of residents in the area. The shopping centre project is part of an extensive development plan of the Mölndal city centre which also includes new offices and apartments”, says Katarina Wåhlin Alm, NCC Property Development.
“Mölndals Galleria has an excellent location in the centre of Mölndal with strong purchasing power and next to a busy public transportation hub. We are very happy with this joint venture where Citycon will focus on its key strengths in developing successful urban everyday retail concepts and tenant relationships with NCC focusing on its long track record in project development and construction”, says Nils Styf, Chief Investment Officer of Citycon.
Mölndals Galleria is the second shopping centre project developed by Citycon and NCC together. In Finland, Citycon and NCC are currently constructing a 25,000 square metres extension to the Iso Omena shopping centre in the Helsinki area.
For further information, please contact:
Nils Styf, CIO
Tel. +46 733 506 039
Citycon Oyj (NASDAQ OMX: CTY1S) is a leading owner, developer and manager of urban grocery-anchored shopping centres in the Nordic and Baltic region, managing assets that total approximately EUR 3.3 billion and with market capitalisation of approximately EUR 1.6 billion. For more information about Citycon, please visit www.citycon.com