‘Right assets’ stands for focusing on necessity-based, multifunctional shopping centres connected to public transportion in growing urban areas.
What does this mean in practise?
- Investing in energy-efficient urban shopping centres directly linked to public transportation
- Focusing on the daily needs of customers by developing grocery-anchored, multifunctional shopping centres
What did we do in 2018?
- Further improved our portfolio balance and quality through divestments of non-core properties
- Strengthened our presence in growing urban areas with continued investments in (re)development projects (e.g. Lippulaiva)
- Opened a brand-new shopping centre Mölndal Galleria in the Greater Gothenburg area
- Started a repositioning project in Kista Galleria in Stockholm
Citycon’s portfolio consists of shopping centres that are:
- In urban locations with strong population growth and constant people flow
- Integrated with public transportation
- Grocery-anchored and focusing on daily shopping
- Dominant in their catchment area
- A hub to health care and other municipal services
In recent years, Citycon has focused on enhancing its portfolio quality not only through (re)development projects, but also through divestments.
Since the strategy update in 2011, Citycon has divested 65 non-core properties and five residential portfolios for a total value of approximately EUR 750 million. The improvement of the portfolio quality will continue in the next few years and the goal is to further divest assets for EUR 200-400 million.
|# of shopping centres||78||41||30|
|Average size, MEUR||32||115||160|
A core part of Citycon's strategy is to actively develop its shopping centres either via (re)developments or extensions. The objective is always to increase the commercial attractiveness and competitiveness of the shopping centre and thereby generate stronger rental growth while consolidating market value.
Key investment criteria
≥ 150 bps over required valuation yield
50% pre-leasing target
Read more on our current development projects.