Citycon expands its ownership in Trio Shopping Centre in Lahti
Citycon Oyj, a property investment company specialised in retail premises,
acquired 33.1 per cent of the shares in a mutual real estate company Kiinteistö
Oy Lahden Trio in a transaction executed on 13 September 2005. The real estate
company owns Trio Shopping Centre located in Lahti. After the transaction
Citycon's holding in the real estate company corresponds to 88.7 per cent of the
shares in the company. Debt free purchase price amounted to EUR 18.7 million.
Title to the object of the transaction will be transferred to Citycon on 15
September 2005.
The transaction relates to Citycon's growth strategy to expand its business in
Finland, Scandinavia and the Baltic countries.
As a result of the transaction, Citycon's leasable property holding in Trio
increased with approx. 8,400 square metres to approx. 34,000 square metres of the
total leasable area of approx. 37,300 square metres. The net yield percentage of
the purchased property on its purchase price at the date of the transaction was
6.7. With the help of the acquisition the company expects to achieve operational
synergies and further potentials to develop the shopping centre. The transaction
is financed through a bank loan.
Trio Shopping Centre is one of the largest shopping centres in Finland with the
total sales of approx. EUR 78.5 million and with about 8.9 million customers in
2004. It is the most important service complex of specialty stores within its
catchment area.
Citycon is the market leader for shopping centre business in Finland. Citycon
owns a total of 18 shopping centres, 16 in Finland, one in Sweden and one in
Estonia.
In addition to shopping centres, Citycon owns 127 supermarkets and shops in
Finland. The fair value of the company's entire property portfolio on 30 June
2005 was EUR 754.7 million, of which shopping centres accounted for 60.9 per cent
and supermarkets and shops for 39.1 per cent.
Helsinki, 13 September 2005
CITYCON OYJ
Board of Directors
For further information, please contact:
Petri Olkinuora, CEO, tel. +358 9 6803 6738 or
+358 400 333 256
Petri.Olkinuora@citycon.fi
Kaisa Vuorio, Head of Shopping Centres Division
tel. +358 500 667 227
kaisa.vuorio@citycon.fi
Distribution:
Helsinki Stock Exchange
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