Citycon Oyj Stock Exchange Release 29.12.2003 1.30pm CITYCON HAS ACQUIRED THE KOSKIKESKUS AND KOSKIKARA SHOPPING CENTRES Citycon Oyj, which specialises in commercial premises for the retail trade, has acquired Polar Real Estate Corporation's holdings in Tampereen Koskikeskus and Valkeakosken Koskikara. Citycon also made a preliminary contract for the acquisition of Seinäjoen Torikeskus. If the terms of the preliminary contract are fulfilled, the transaction will be effected on 27 February 2004. The acquisitions will underpin Citycon's strong position on the Finnish market for retail premises and reinforce the Shopping Centres Division, which is part of the company's core competence. The combined price for Tampereen Koskikeskus and Valkeakosken Koskikara is 49.3 million euros. The net yield of the properties on their purchase price at the date of the transaction is roughly 7.9 per cent. To finance the transactions, Citycon Oyj is taking a 45 million euro long-term loan. The period and terms of the loan correspond to those of the loan made in November 2002. The main arranger of the syndicated loan is Nordea Bank Finland Plc, with Svenska Handelsbanken AB, Eurohypo AG and HSH Nordbank AG as the other arrangers. The transaction will make 191 current tenants in the properties customers of Citycon. Citycon estimates that the deal will boost the Shopping Centres Division's net rental income by roughly 3.9 million euros annually or roughly 13.2 per cent. Koskikeskus is the most varied shopping centre in the Tampere economic zone and it is located in the city centre. The transaction makes Citycon the owner of all the retail facilities in the property. The total sales of Koskikeskus have grown at 8-11 per cent per year over the past four years, which is twice the overall trend in this business. An extension amounting to roughly 15,000 square metres of commercial space has been planned for Koskikeskus. Work has been started on the planning permission required for the project. Valkeakosken Koskikara is in the Tampere market area, in the heart of the city of Valkeakoski. Koskikara is a vigorous shopping centre in an excellent business location with good access. Summary of the newly acquired holding Koskikeskus Koskikara Retail space, sq.m. 13,444 5,671 Rental occupancy rate of retail premises, % 100% 100% Number of tenants 158 33 Average length of leases, year 3.3 1.5 Summary, entire shopping centre Koskikeskus Koskikara Number of visitors, million* 6.3 2.5 Total sales, €m* 111.0 35.0 Catchment area, Population 306,000 34,000 Year of completion 1988 1993 Citycon's floor area in the shopping centre after the transaction, sq.m. 28,000 5,800 Citycon's holding in the shopping centre after the transaction (before in brackets) 88%(27%) 55%(0%) *Estimate for 2002 "The new acquisitions will underpin Citycon's core competencies. The substantial increase in our holdings in Koskikeskus and Koskikara will strengthen Citycon, but above all they will give the properties themselves a boost. By owning a number of shopping centres we are able to enhance their business and strengthen their market position more effectively than before. Once completed, the major extension planned for Koskikeskus will further improve its position as the biggest and most competitive retail unit in the city centre," says Citycon's CEO Petri Olkinuora. Seinäjoen Torikeskus is one of the leading shopping centres in the large market area of Southern Ostrobothnia. The shopping centre was visited by an estimated 1.8 million customers in 2002 and its total sales were roughly 16.0 million euros. The purchase price of Seinäjoen Torikeskus is 7.0 million euros. The net yield of the property on its purchase price at the date of the transaction is roughly 8.6 per cent. Citycon is the Finnish market leader for shopping centre business. After the transaction, the company owns a total of 15 shopping centres in the Helsinki Metropolitan Area and other regional centres in Finland. The estimated total sales of the shopping centres after the transaction are 721 million euros a year and the leasable area owned by Citycon totals 203,000 sq.m. In addition to shopping centres, Citycon also owns 133 supermarkets and shops. The balance sheet value of the company's entire property portfolio after the transaction now effected is 722.8 million euros, of which shopping centres account for 58.0 per cent and supermarket and shops for 42.0 per cent. Citycon Oyj Board of Directors Further information: CEO Petri Olkinuora Tel. +358 9 680 36 738 or +358 400 333 256 Distribution: Helsinki Exchanges and key media


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