Citycon expands its operations into Sweden

Citycon Oyj Stock exchange release 19 May 2005 10:00 am Citycon expands its operations into Sweden Citycon Oyj has signed an agreement on 18 May 2005 under which Citycon buys 75 percent of the shares of Armada Exploaterings AB. Purchase price was 49.9 million Swedish crowns (EUR 5.4 million). Armada Exploaterings AB owns the Åkersberga shopping centre located northeast of Stockholm. The total value of the properties belonging to the shopping centre is approximately 440 million Swedish crowns (EUR 47.7 million). The seller is Armada Fastigheter AB which is owned by the municipality of Österåker. Following the transaction Armada Fastigheter AB will continue to own 25 percent of Armada Exploaterings AB. The title to the acquisition target will be transferred to Citycon on 1 July 2005. Citycon and the municipality of Österåker will start to develop the shopping centre together. Citycon will buy the outstanding shares of Armada Exploaterings AB after the expansion is completed. This is Citycon's first foreign investment as a part of its internationalization strategy. The Åkersberga shopping centre is an important part of the centre of the municipality of Österåker, which is located about 30 kilometres from Stockholm. About 37,000 inhabitants currently live within the catchment area of the shopping centre. Åkersberga is a growth centre, and its population and number of jobs are estimated to increase significantly. Citycon will start to develop the Åkersberga shopping centre by expanding it, and modernizing the existing premises. The shopping centre has 33,000 square metres of retail premises, offices and residential. Currently about 80 companies operate in the shopping centre, of which about 40 are retail businesses. The first international investment "The acquisition of the Åkersberga shopping centre is the first international investment as a part of Citycon's growth strategy. Our aim is to carry out more foreign investments and build a property investment company that operates throughout the Nordic countries and Baltic states, and takes an active role as owner of its properties. "Åkersberga has great development potential. Active development of the property can have great benefits to the shopping centre's customers and the tenants of the real estate," said Petri Olkinuora, CEO of Citycon. Åkersberga, estimated key figures Floor space Pre-expansion Post-expansion m2 Retail premises 20,300 31,500 Office space 800 800 Residential 12,000 17,500 Other 200 200 Total 33,300 50,000 Annual gross rental income, millions of Swedish crowns 48.0 Annual net rental income, millions of Swedish crowns 30.9 Net yield* 8.0 percent Occupancy rate about 100 percent Anchor tenants: Hypermarket ICA, Kapp-Ahl, Lindex, Kick's, Nordea Bank, ON OFF Total turnover in 2003, millions of Swedish crowns 482 Annual visitors, millions about 4.5 *Does not include property acquired for the expansion A profitable investment The annual net yield of Citycon's investment at the time of the signing is about 8.0 percent. By 2009 the development project will be completed which will transform the shopping centre into a unified complex. The total investment in the development project will be 900-950 million Swedish crowns, and the annual net yield of the investment is projected to be about 9.0 percent. Citycon will initially finance the acquisition through a bank loan Citycon is specialized in the shopping centre business Citycon is a Finnish property investment company specialising in retail premises. The company leases, manages and develops its property portfolio and also plans and commissions the construction of new premises. Citycon Oyj is a publicly traded company, and its shares are quoted on the Helsinki stock exchange. Citycon owns 144 properties. On 31 March 2005, these properties had a total fair value of EUR 736.4 million and net yield of 8.7 percent. The company's property portfolio is concentrated in the Helsinki Metropolitan Area and Finland's largest cities. In 2004, Citycon had turnover of EUR 88.6 million, and gross rental income from its property portfolio stood at EUR 83.2 million. About 44.9 percent of the income came from the properties in the Helsinki Metropolitan Area, and 35.7 percent from properties in other cities. Citycon's strong expertise in business facilities, the constant improvement of its properties and its comprehensive property portfolio facilitate the creation of long-lasting customer relationships and efficient service for customers, including large retail chains. Citycon is an expert in retail premises and a partner for its tenants. The company creates opportunities for tenants' business development by monitoring intensely tenants' needs and market situation. Helsinki 19 May 2005 Citycon Oyj Board of Directors For more information, please contact: Petri Olkinuora, CEO tel. +358 9 6803 6738 or +358 400 333 256 petri.olkinuora@citycon.fi Pirkko Salminen, CFO tel. +358 9 6803 6730 or +358 50 3022 485 pirkko.salminen@citycon.fi Distribution: Helsinki stock exchange Main news media www.citycon.fi

Prenumerera

Beställ våra börsmeddelanden till din e-post

Koncern börs- och pressmeddelanden
Pressmeddelanden på regionnivå (*lokalt språk)

Du får automatiskt våra börsmeddelanden till din e-post efter att de blivit publicerade. Du kan avbryta prenumerationen när som helst. Vid prenumeration godkänner du vår sektretesspolicy