CITYCON OYJ Investor News 28 May 2026 at 13:40 hrs
Citycon is investigating potential divestment of its centers and has today signed a non-binding Letter of Intent to divest centers for around EUR 400m, at latest book value (31.3.2026) subject to adjustments and other conditions as customary. The non-binding Letter of Intent has been signed together with the fully owned company of G City Ltd. The centers are located in Finland. Citycon would retain property management services for the divested centers and will receive management service and success fees as customary. The contemplated divestment would be in line with Citycon’s updated target to continue to divest its assets in the amount of around EUR 1 billion in the next 24 months, as disclosed in connection with Citycon’s financial statements release 2025.
The execution of binding agreements concerning the contemplated transaction is subject to, among other things, completion of necessary due diligence process, reaching agreement on transaction structure and its detailed terms and conditions, and the approval of the board of directors of each of the seller and the purchaser. The transaction will also be subject to the completion of a public offering of securities of a newly established company by G City (“New Entity”) which is planned to be the purchaser of the assets.
G City, G City's fully owned subsidiary Gazit Europe Netherlands and Chaim Katzman currently hold in aggregate 158,665,652 shares in Citycon, corresponding to approximately 86.4 percent of all the Shares and voting rights in Citycon. G City has a controlling interest in Citycon and is its parent company and a related party to the company.
Related party transactions that deviate from the ordinary course of business of the company or are made in deviation from ordinary market terms require approval by the board of directors to implement the related party transaction. Any decision to approve the contemplated transaction will be made by the independent board members.
Citycon emphasizes that there is no certainty at this stage regarding the completion of the contemplated divestment or the scope thereof, or, the structure, or timing of any offering, sale or distribution of securities of the New Entity established by G City, as these remain subject to factors largely beyond Citycon’s control. Such factors include, among other things, the receipt of required regulatory approvals and permits, arrangements with financing institutions, prevailing capital market conditions, approval of a prospectus by relevant regulatory authorities, potential listing approval by a stock exchange, and approvals by the corporate bodies of Citycon and other relevant parties.
CITYCON OYJ
Contact requests through:
Hilik Attias
Chief Financial Officer
Tel. +358 40 688 8580
hilik.attias@citycon.com
Anni Torkko
Director, Group Corporate Analysis & IR
Tel. +358 45 358 0570
anni.torkko@citycon.com
Citycon is a leading owner, manager and developer of mixed-use real estate featuring modern, necessity-based retail with residential, office and municipal service spaces that enhance the communities in which they operate. Citycon is committed to sustainable property management in the Nordic region with assets that total approximately EUR 3.8 billion. Our centres are located in urban hubs in the heart of vibrant communities with direct connections to public transport and anchored by grocery, healthcare and other services that cater to the everyday needs of customers.
Citycon’s shares are listed on Nasdaq Helsinki Ltd.