Citycon to join forces with cooperative enterprise Osuuskauppa Arina in the redevelopment of Galleria block in Oulu

Citycon Oyj, Press Release 14 June 2011

 

Citycon Oyj and the cooperative enterprise Osuuskauppa Arina have signed a co-operation agreement on continuing the redevelopment of Galleria block in the heart of Oulu. In addition, this project partly involves the Kauppuri block and the Isokatu area between it and Galleria block. The aim is to construct a shopping centre of approximately 30,000 floor square metres within the block, plus office space and around 120 apartments. The total value of the planned investment is around EUR 150 million.

The shopping centre is planned to house Arina's Sokos department store and a considerable number of other speciality shops and services. The department store will occupy more than one third of the planned shopping centre’s gross leasable area, which will house a broad selection of fashion shops and a variety of café and restaurant services, in addition to the department store.

Project planning will proceed in 2011, in unison with the area planning process of the City of Oulu. The realization of the redevelopment project still requires that the city plan will be confirmed. It also requires further design of the underground parking and maintenance facilities. The aim is to conclude the investment by Citycon and Osuuskauppa Arina within the first six months of 2012, and to begin construction immediately afterwards. This would facilitate completion of the new shopping centre towards the end of 2014, alongside the underground parking facility planned by the City of Oulu. Elevators will connect the parking facility directly with the new shopping centre.

Citycon and Osuuskauppa Arina predict that the shopping centre will considerably reinforce commercial services in downtown Oulu and enhance city centre appeal. The new retail premises and strong commercial entity are expected to bring a substantial number of new retail businesses to Oulu, while further strengthening the position of current businesses in the city centre.

‘At Citycon, we are glad to have established mutual strategic intent alongside Osuuskauppa Arina, the other major property owner in the block, and to be able to develop this project together. Citycon firmly believes in sustainable development and in city centres as retail sites and the Galleria block project furnishes yet more proof that this strategy is being fulfilled. Oulu is a growing economic region with major purchasing power, which makes it a highly interesting investment target for us,’ comments Jukka Posti, Vice President, Property Development at Citycon.

“The city center of Oulu is developing alongside with the attraction created by new services. The co-operation with Citycon brings shopping centre expertise to the project and this enables us to enhance services to Arina´s customers. The fast implementation of the City of Oulu´s planning and design resulting in working outcome in the city center and Raksila area, will provide Oulu city center with the regional number one position as being the centre of commercial services supporting each other”, says Veli-Matti Puutio, CEO at Osuuskauppa Arina.

 

For further details, please contact:

Citycon Oyj, Jukka Posti, Vice President, Property Development, tel. +358 40 524 3930

Osuuskauppa Arina, Veli-Matti Puutio, CEO, tel. +358 50 539 8807

 

 

  

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