Development projects
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 criteria
- ≥ 150 bps over required valuation yield
- 50% pre-leasing target
Investments in (re)developments of approx. EUR 150-200 million p.a. on average.
Mölndal Galleria
Citycon and NCC Property Development have entered into a joint venture to develop Mölndal Galleria in Gothenburg. An outdated retail property was demolished and a new centre is being built in the same location. Zoning plan has been approved and the construction started in August 2015. Mölndal Galleria will be a modern urban city gallery focusing on daily necessities. The centre will have about 70 shops, restaurants and service units. Pre-leasing is ongoing. Further information on the project can be found here
| Project information | |
| Location | Gothenburg, Sweden |
| Citycon's expected gross investment, MEUR1) | 60.0 (120.0) |
| Gross leasable area (GLA), after (sq.m.) | 24,000 |
| Completion target | Q3/2018 |
1) The number in brackets reflects Citycon's total investment in the project including agreed buyouts of JV shares.
Straedet
A new, urban open-air shopping centre is being built by TK Development in the heart of Köge in the greater Copenhagen area. Straedet will be anchored by two grocery retailers and a cinema and will comprise around 35 retail units, cafés and restaurants. Citycon does not invest in the (re)development project but will acquire the property at a fixed yield at completion in 2017. Further information on the project can be found here.
| Project information |
|
| Location | Copenhagen, Denmark |
| Citycon's expected gross investment, MEUR | 75.0 |
| Gross leasable area (GLA), after (sq.m.) | 19,000 |
| Completion | First part acquired, Q3/2017 and Q1/2018 |
Lippulaiva
Lippulaiva is located in the heart of the rapidly growing Espoonlahti area and has established its place as a strong, local shopping centre. The new metro station of the second phase of the Länsimetro extension and the terminal for connecting traffic will be located under the shopping centre. The new Lippulaiva will host around 80 different shops, cafés, restaurants and services in addition to municipal services and health care facilities. The service offering will have a strong focus on groceries and other necessity driven retail.
| Project information | |
| Location | Finland, Espoo / The capital area |
| Citycon's expected gross investment, MEUR | 215 |
| Gross leasable area (GLA), before and after (sq.m.) | 19,200/44,100 |
| Completion target | 2021 |
Projects under planning
Tumba Centrum
Citycon is also planning an extension of Tumba Centrum, which will be integrated with a new bus terminal. Citycon's plans include retail, health care and municipal services as well as additional parking . Zoning has been approved and pre-leasing is ongoing.
| Project information | |
| Location | Stockholm, Sweden |
| Citycon's expected gross investment, MEUR | 50 |
| Gross leasable area (GLA), before and after (sq.m.) | 23,400/32,000 |
| Completion target | 2020 |