CITYCON BOUGHT THE JYVÄSKYLÄN FORUM SHOPPING CENTRE
Citycon Oyj, a specialist in retailing premises, bought the
Jyväskylän Forum shopping centre from If P&C Insurance Ltd.
citycon underpin its position in the Finnish commercial property market.
The purchasing price of the property was EUR 28.3 million. The
deal will be financed with a syndicated loan arrangement and with
sales of company-held Citycon shares. The main arranger of the
syndicated loan is Nordea Bank Finland Plc and other parties to it
are Svenska Handelsbanken AB, Eurohypo AG and HSH Nordbank AG.
The Jyväskylän Forum shopping centre is in the centre of Jyväskylä
and occupies the best business location on a busy pedestrian
street. It was visited by more than 8 million customers in 2002
and its total sales were estimated at EUR 45 million. The leasable
retail space amounts to approximately 15,000 square metres. At the
time of the purchase, the property gives a net yield of 8.3 per
cent on the purchase price. Jyväskylän Forum's strong market
position affords excellent prospects for developing the property.
The deal will make the 35 tenants currently in the shopping centre
customers of Citycon. The shopping centre's biggest tenant is
Kesko Corporation, which accounts for roughly a half of the
shopping centre's rental income. The rental occupancy rate of the
commercial facilities in the shopping centre is over 99 per cent.
"Shopping centres are the core of Citycon's business and the
acquisition of Jyväskylän Forum is part of the development of
business and the property portfolio in line our strategy. By
owning a number of shopping centres, we are able efficiently to
develop their business activities and to strengthen their position
on the market," says Citycon's CEO Petri Olkinuora.
Citycon is the market leader for shopping centre business in
Finland. After the acquisition of Jyväskylän Forum, the company
owns 14 shopping centres in the Helsinki Metropolitan Area and
other regional centres in Finland. Citycon owns also a part of
Shopping Centre Jyväskeskus in Jyväskylä.
In addition to shopping centres, Citycon also owns 133
supermarkets and shops. The company's property portfolio will be
EUR 672,7 million after the transaction, of which shopping centres
account for 54.9 per cent and supermarkets and shops for 45.1 per
Board of Directors
CEO Petri Olkinuora
Tel. +358 9 680 36 738 or 0400 333 256
Shopping Centre Director Kaisa Vuorio
Tel. +358 9 680 36 711 or 0500 667 227
Distribution: Helsinki Exchanges and main media