Citycon Oyj Stock Exchange Bulletin 30.10.2003, 1.00 p.m.
CITYCON
BOUGHT THE JYVÄSKYLÄN FORUM SHOPPING CENTRE
Citycon Oyj, a specialist in
retailing premises, bought the
Jyväskylän Forum shopping centre from If P&C
Insurance Ltd.
citycon underpin its position in the Finnish commercial
property market.
The purchasing price of the property was EUR 28.3 million.
The
deal will be financed with a syndicated loan arrangement and with
sales
of company-held Citycon shares. The main arranger of the
syndicated loan is
Nordea Bank Finland Plc and other parties to it
are Svenska Handelsbanken AB,
Eurohypo AG and HSH Nordbank AG.
The Jyväskylän Forum shopping centre is in
the centre of Jyväskylä
and occupies the best business location on a busy
pedestrian
street. It was visited by more than 8 million customers in 2002
and its total sales were estimated at EUR 45 million. The leasable
retail
space amounts to approximately 15,000 square metres. At the
time of the
purchase, the property gives a net yield of 8.3 per
cent on the purchase
price. Jyväskylän Forum's strong market
position affords excellent prospects
for developing the property.
The deal will make the 35 tenants currently in
the shopping centre
customers of Citycon. The shopping centre's biggest
tenant is
Kesko Corporation, which accounts for roughly a half of the
shopping centre's rental income. The rental occupancy rate of the
commercial facilities in the shopping centre is over 99 per cent.
"Shopping centres are the core of Citycon's business and the
acquisition
of Jyväskylän Forum is part of the development of
business and the property
portfolio in line our strategy. By
owning a number of shopping centres, we
are able efficiently to
develop their business activities and to strengthen
their position
on the market," says Citycon's CEO Petri Olkinuora.
Citycon
is the market leader for shopping centre business in
Finland. After the
acquisition of Jyväskylän Forum, the company
owns 14 shopping centres in the
Helsinki Metropolitan Area and
other regional centres in Finland. Citycon
owns also a part of
Shopping Centre Jyväskeskus in Jyväskylä.
In addition
to shopping centres, Citycon also owns 133
supermarkets and shops. The
company's property portfolio will be
EUR 672,7 million after the transaction,
of which shopping centres
account for 54.9 per cent and supermarkets and
shops for 45.1 per
cent.
Citycon Oyj
Board of Directors
Further
information:
CEO Petri Olkinuora
Tel. +358 9 680 36 738 or 0400 333
256
Shopping Centre Director Kaisa Vuorio
Tel. +358 9 680 36 711 or 0500
667 227
www.citycon.fi
Distribution: Helsinki Exchanges and main media
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