Today, Citycon has entered into an agreement to purchase shopping centre Albertslund Centrum in Greater Copenhagen area in Denmark from the Municipality of Albertslund for DKK 181 million (approximately EUR 24 million). The shopping centre’s gross leasable area is currently approximately 16,000 square metres; the transaction includes a purchase of a grocery store extension which will be bought at the time of its completion in the end of 2014. The extension will increase the GLA to approximately 20,000 square metres. The occupancy rate of the shopping centre is 97.5 per cent. On the acquisition date, the net initial yield on the investment is approximately 7.5 per cent. The deal is expected to be closed in July.
TK Development acted as an advisor in the transaction. Citycon and TK Development have signed an agreement regarding future management of the shopping centre that enables Citycon not to hire any personnel in Denmark at this stage.
Albertslund Centrum is an open-air local shopping centre with 45 shops located in the centre of the municipality of Albertslund approximately 17 kilometres east of city centre of Copenhagen. The shopping centre is located next to the train station which provides the centre with steady footfall. The shopping centre is anchored by grocery tenants Superbest and Aldi. A third large supermarket will open in the future extension. The shopping centre is a community centre that serves as the social hub of the Albertslund municipality providing, in addition to retail, municipal services, town hall, theatre, cinema and offices. The municipality of Albertslund is going to further develop the area in the near future.
“This acquisition reflects Citycon’s commitment and ability to implement the company’s strategy of expansion to other Nordic countries. Our goal is to accretively diversify our cash flows. The acquisition of neighbourhood centre in the capital area is the first and solid step to the Danish market, “says Marcel Kokkeel, CEO of Citycon.
Citycon will finance the acquisition from existing credit facilities in local currency, in accordance with the company’s financing policy. The acquisition of Albertslund Centrum will increase Citycon’s rental income and it is expected to be accretive to Citycon’s earnings per share.
Following the acquisition, Citycon will own a total of 37 shopping centres in Finland, Sweden, Estonia, Lithuania and Denmark. In addition, the company manages two shopping centres in Finland without owning them.
Helsinki, 7 June 2012