Citycon expands to Estonia, acquiring Tallinn's Rocca al Mare Shopping Centre
Citycon Oyj specialising in retail premises, has today acquired the Rocca al Mare
Shopping Centre in Tallinn, the capital of Estonia. Citycon also acquired the
neighbouring land with city planning for future extension. The right of
possession was transferred to Citycon at the date of acquisition. The total debt-
free purchase price was EUR 62.1 million and the net yield of the existing
shopping centre at the date of the transaction was 8.5 per cent excluding the
additional land. This acquisition opens the Baltic market to Citycon and
contributes to the company's expansion strategy in Scandinavia and the Baltic
countries.
"Citycon acquired its first shopping centre in the Baltic area and will start to
build its extension of 25.000 sq.m. as soon as all permits have been obtained and
subject to successful marketing of the retail premises. Citycon has now
implemented its growth strategy by investing in prominent shopping centres in
Sweden and Estonia. We are actively looking for possibilities to continue our
growth both in these areas and in Finland", says Citycon's CEO Petri Olkinuora.
Rocca al Mare's occupancy rate is close to 100 per cent. The shopping centre's
anchor tenants are the Finnish retail chains Prisma and Hobby Hall. The estimated
total sales volume of the shopping centre for 2004 was EUR 37.0 million, with
roughly 4.5 million customers visiting annually.
The aim of the potential extension project is to improve the property's
competitiveness and ensure its solid commercial position in the future. The
permitted building volume of the land acquired for the extension is 25,000 sq.m.
Citycon expects to start the extension project already this year provided that
all necessary approvals will be obtained. The extension is scheduled for
completion within three years. Estimated investment of the extension project will
be approximately EUR 20 million. Once the extension is complete, the annual net
yield of the shopping centre is expected to exceed the present net yield.
Rocca al Mare key figures:
Current After extension, estimate
Built, year 1998 and 2000 2008
Leasable area, m2 28,400 48,400
Number of shops 105
Number of parking lots 1,100 1,820
Citycon will initially finance the acquisition through a bank loan arranged by
Nordea Bank Finland Plc.
Citycon is Finland's market leader in the shopping centre business, owning a
total of 16 shopping centres in the Helsinki Metropolitan Area and other regional
centres in Finland, as well as the Åkersberga shopping centre in Sweden as of 1
July 2005.
In addition to the shopping centres, Citycon owns 127 supermarket and shop
properties in Finland. The market value of Citycon's property portfolio was
approximately EUR 754.7 million on 30 June 2005, of which shopping centres
accounted for 60.9 per cent and supermarkets and shops for 39.1 per cent.
Helsinki, 21 July 2005
CITYCON OYJ
Board of Directors
Further information:
CEO Petri Olkinuora, tel. +358 9 6803 6738 or
(mobile) +358 400 333256
petri.olkinuora@citycon.fi
Distribution:
Helsinki Stock Exchange
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