Today, Citycon has entered into an agreement to purchase the Kristiine Shopping Centre in Tallinn, Estonia from one of the largest property developers in the Baltic countries, Pro Kapital, for approximately EUR 105 million. With a gross leasable area of 42,600 square metres, Kristiine is Tallinn’s second-largest shopping centre after Citycon’s Rocca al Mare. The deal is expected to close during the first half of 2011 and is subject to approval by the Estonian competition authorities.
“This acquisition reflects Citycon’s commitment and ability to implement the company’s strategy of expansion in our core markets. Going forward, we will continue to pursue additional opportunities to invest our capital effectively and accretively and to grow and diversify our cash flows”, says Yariv Marom, Citycon’s Chief Investment Officer.
The Kristiine Shopping Centre is located on one of the main transportation corridors in the city centre of Tallinn and has a large catchment area of 270,000 inhabitants. Major anchors include Prisma and Marks & Spencer. Built in phases in 1999 and 2002, Kristiine was expanded last autumn by more than 12,000 square metres which strengthened the shopping centre’s tenant mix and offering.
Citycon will fund the acquisition from its existing credit facilities. The acquisition will increase rental income as well as profitability in Citycon’s Baltic operations and is expected to be accretive to Citycon’s earnings per share.
“As the developer, owner and operator of two shopping centres in Tallinn, Rocca al Mare and Magistral, Citycon welcomes Kristiine to its portfolio. Kristiine is a well-known and successful shopping centre with 170 stores and high quality tenants. It has also strong sale and footfall figures”, states Harri Holmström, Citycon Oyj’s Vice President, Baltic Operations.
Following the acquisition, Citycon will own and manage a total of 35 shopping centres and 46 other retail properties in Finland, Sweden, Estonia and Lithuania.
Helsinki, 17 March 2011
CITYCON OYJ
Petri Olkinuora
CEO
For further information, please contact:
Petri Olkinuora, CEO
Tel. +358 20 766 4401 or +358 400 333 256
petri.olkinuora@citycon.fi
Harri Holmström, Vice President, Baltic Operations
Tel. +358 20 766 4418 or +358 40 845 5726
harri.holmstrom@citycon.fi
Yariv Marom, Chief Investment Officer
+358 20 766 4512
yariv.marom@citycon.fi
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