Citycon continues building its platform in Denmark and has signed an agreement with TK Development regarding the forward purchase of the Straedet project in Køge in the greater Copenhagen area. TK Development is developing an urban, grocery-anchored open-air shopping centre in the heart of Køge, next to the train station.
Citycon will acquire the modern, high quality property at completion based on a fixed 6.25% net initial yield. The purchase price is estimated to be approximately EUR 75 million.
The shopping centre will have a gross leasable area of approximately 19,000 sq.m. Straedet will be anchored by two grocery retailers and a cinema and will in total comprise some 38 retail units, cafés and restaurants. The open-air shopping centre will complete a defined high street loop with pedestrian streets in the centre of Køge and will be integrated with the refurbished city hall and other municipal services. Køge forms part of the Copenhagen metropolitan area and is located approximately 30 minute driving time from the Copenhagen CBD. The city is also directly connected to downtown Copenhagen by commuter rail system. Køge has strong demographics with a disposable household income higher than the average for the Copenhagen municipality and the city’s old town and harbour is a popular destination for Danish and foreign tourists.
“This new, attractive urban development fits perfectly with our portfolio and philosophy of investing in every day shopping. The deal structure enables us to source a new top quality property with an attractive risk-return relationship. With this transaction we continue to build our platform in Denmark and we see opportunities in the market also going forward. Our focus in Denmark remains on urban grocery-anchored shopping centres in the greater Copenhagen area,” says Nils Styf, CIO of Citycon.
TK Development is expecting to start construction during Q1/2015 and the project is scheduled to open in phases with final completion in Q2/2017 at which time Citycon will acquire the property.
Helsinki, 28 January 2015
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 regions, managing assets that total approximately EUR 3.3 billion and with a market capitalisation of approximately EUR 1.6 billion. For more information about Citycon, please visit www.citycon.com