Citycon to acquire a portfolio of three shopping centres in Norway
Citycon has today agreed to acquire the remaining interest in Sektor Portefølje II AS, a portfolio of three shopping centres in Norway. The transaction consists of three assets, Stovner Senter, Torvbyen and Markedet. Citycon has managed the shopping centres since 2015 and also owned 20% of the portfolio. The transaction cost amounts approximately to EUR 145 million, of which Citycon assumes existing debt of approximately EUR 135 million and pays a cash purchase price for shares of approximately EUR 10 million. After the transaction, Citycon has 100% ownership of the portfolio. The transaction is expected to close on 6 February 2020.
In conjunction with this transaction an agreement has been signed on 3 February 2020 to sell Markedet with the price of approximately EUR 12 million. The closing is expected to take place by the end of the February 2020.
“With the acquisition of this portfolio, we will strengthen our position in Norway. We see value in this portfolio and are in the process of selling Markedet, the smallest of the three assets. We have owned and managed the centres since 2015 and we know the assets well. With our extensive knowledge and full ownership of these assets, we believe we can create value for our shareholders,” says F. Scott Ball, CEO at Citycon.
Further details of purchased assets:
|Location||Oslo, Norway||Fredrikstad, Norway||Haugesund, Norway|
|Tenant Sales, MNOK||805||300||215|
|Occupancy rate, %||89.5||95.5||93.2|
F. Scott Ball
Tel: +46 (0)73 063 5190
Executive VP and CFO
Tel: +358 50 557 9137
Citycon Oyj is a leading owner, manager and developer of urban, grocery-anchored shopping centres in the Nordic region, managing assets that total approximately EUR 4.4 billion. Citycon is the number one shopping centre owner in Finland and among the market leaders in Norway, Sweden and Estonia. Citycon has also established a foothold in Denmark.
Citycon Oyj has investment-grade credit ratings from Moody’s (Baa3) and Standard & Poor’s (BBB-). Citycon Oyj’s shares are listed on Nasdaq Helsinki Ltd. stock exchange.
For more information about Citycon Oyj, please visit www.citycon.com.