Citycon to buy Stenungs Torg shopping centre near Gothenburg, Sweden
Citycon signed an agreement today to acquire the entire share capital of Stenungs
Torg Fastighets AB, the majority holder of the Stenungs Torg shopping centre
located in the Stenungsund municipality north of Gothenburg. The debt-free
purchase price of the shares is SEK 393 million (approximately EUR 41.9 million)
and the net yield on the purchase price on the transaction date 6.5 per cent.
Citycon has also agreed on the development of the shopping centre with the
shopping centre's minority holder KF Fastigheter AB. It is expected that the
transaction will be finalised early September once the necessary approvals by the
municipality of Stenungsund are available.
Enjoying strong population growth, Stenungsund is a coastal municipality with
approximately 23,000 inhabitants located 45 km north of Gothenburg. The Stenungs
Torg shopping centre is the region's service and commercial hub, with a
population of around 74,000 in its catchment area. Adjacent to the shopping
centre is a large recreational marina with a guest harbour used by the region's
summer residents when visiting the shopping centre.
Coop is Stenungs Torg's grocery supplier, while several nationwide chains and
local businesses offer a vast array of specialty retail services, such as
clothing, home and leisure, cafeteria and restaurant services, and public
services. In 2005, the centre attracted 3.2 million customers. The estimated
sales of the shops and restaurants amount to some SEK 460 million (approx. EUR
49.5 million) exclusive of VAT. There are about 40 shops and restaurants in the
acquired part of the shopping centre and in the entire centre over 60.
Stenungs Torg Fastighets AB leases 33,100 square metres of the centre's leasable
premises: 13,900 square metres of retail premises, 11,600 square metres of office
space and 1,000 square metres of storage facilities. The company also owns 88
flats in the centre with a total leasable area of approximately 6,600 square
metres. A total of 26,000 square metres of retail premises are housed in the
centre and there are parking facilities for more than 1,000 vehicles. The
occupancy rate of premises owned by Stenungs Torg Fastighets AB is 94 per cent.
The acquisition of the shopping centre diversifies Citycon's position as a retail
service provider in the Gothenburg area and in Sweden. An alteration to the city
plan for the area is being prepared, allowing for additional building in the
future.
For more details on the purchased property, see www.stenungstorg.se.
Helsinki, 22 May 2006
CITYCON OYJ
Board of Directors
Further information:
Petri Olkinuora, CEO, tel. +358 9 6803 6738 or
mobile +358 400 333256
Kaisa Vuorio, Head of Shopping Centres Division
mobile +358 500 667 227
Citycon is the Finnish market leader in the shopping centre business. Citycon
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, plus the Rocca al Mare shopping
centre in Tallinn, Estonia.
In addition to the shopping centres, Citycon owns 127 supermarket and retail
premises in Finland.
Distribution:
Helsinki Stock Exchange
Main media
www.citycon.fi