Citycon signed an agreement today for the sale of part of shopping
centre Iso Omena to an affiliate of GIC Real Estate, the property
investment arm of the Government of Singapore Investment Corporation.
Upon closing of the agreement, Citycon will own 60 per cent of the
shopping centre and GIC Real Estate, 40 per cent. The parties have
agreed that Citycon will continue to be responsible for the business
and management of the shopping centre on customary terms.
The agreed debt-free purchase price, EUR 131.6 million, is equivalent
to 40 per cent of the original acquisition price of EUR 329 million
paid by Citycon.
According to this agreement, both Citycon and GIC Real Estate will be
long-term investors in the shopping centre and have agreed to develop
and extend the mall."We are extremely pleased to partner with one of the
highly-regarded real estate investment management companies. Iso
Omena is the largest and best centre in our shopping centre
portfolio. With this agreement, we will release capital for the
redevelopment of our property portfolio in accordance with our
strategy. This business concept may also become part of our strategy
and source of capital", states Citycon's CEO Petri Olkinuora.
Citycon acquired shopping centre Iso Omena, which was completed in
2001, in September 2007. Located in the Matinkylä district of the
southern part of the City of Espoo, Iso Omena is Finland's fifth
largest modern shopping centre and has a catchment area with high
spending power. Its total leasable area stands at 61,300 square
metres, of which approximately 49,000 square metres consists of
retail premises. The shopping centre has planning permission for an
extension of approximately 7,000 square metres.
Helsinki, 12 February 2008
Board of Directors
For further information, please contact:
Petri Olkinuora, CEO
GSM +358 (0)400 333 256
Kaisa Vuorio, Vice President, Finnish Operations
GSM +358 (0)500 667 227
OMX Nordic Exchange Helsinki