CITYCON OYJ Press Release 18 February 2011
Citycon Oyj has assumed responsibility for the commercial management – including the leasing of retail premises – and marketing of Kämp Galleria, a shopping centre in the heart of Helsinki. Citycon will also be responsible for developing the ongoing (re)development project’s commercial concept. Kämp Galleria is the first shopping centre Citycon manages for an external partner.
In addition, Citycon will buy a 50 per cent share in Espagalleria Oy, from Palace Kämp Group. Espagalleria manages the whole of Kämp Galleria’s lease portfolio. The shopping centre itself is owned by Ilmarinen Mutual Pension Insurance Company, which also holds the remaining 50 per cent of Espagalleria.
Citycon and Espagalleria have signed a premises management agreement, covering the lease of the shopping centre, asset management, commercial management and marketing, all on customary terms. Maintenance of the shopping centre premises is not included.
Kämp Galleria is a top-level property in downtown Helsinki, situated between the high shopping streets of Aleksanterinkatu and Pohjoisesplanadi. As Finland’s only deluxe shopping centre, it is a very strong, nationally known brand. Kämp Galleria’s offerings focus on leading international and domestic fashion chains, as well as high quality cafeteria and restaurant services.
”Citycon is the market leader in Finnish shopping centre business and this alliance with Ilmarinen is a clear sign of trust on our commercial competence. Kämp Galleria is an excellent addition to Citycon’s shopping centre portfolio”, comments Harri Holmström, Acting Vice President, Finnish Operations. ”Citycon can now offer its Finnish tenants the possibility to expand from Helsinki City Centre into the local and the downtown shopping centres of Finland’s largest towns. We are therefore confident that this agreement will also be advantageous to our other shopping centres’ market positions and leasing activity.”
Leading the Finnish property market for shopping centres, Citycon is a top professional in its field. From now on, the Kämp Galleria development project and the shopping centre’s everyday commercial management will benefit from this expertise. ”We are convinced that we can strengthen Kämp Galleria’s position to become the leading shopping centre in Helsinki city centre. The offering of the shopping centre will become more versatile and for this reason, it will attract new tenants to enter Finland. Additionally, we are delighted to have found a new partner in one of Finland’s most highly regarded investors”, says Holmström.
For further details, please contact:
Citycon Oyj, Jukka Vakula, tel. +358 40 761 7287
Ilmarinen Mutual Pension Insurance Company, Tomi Aimonen, tel. +358 50 366 7501