English
Published: 2005-07-21 14:45:00 CEST
Citycon Oyj
Company Announcement
Citycon expands to Estonia, acquiring Tallinn's Rocca al Mare Shopping Centre
CITYCON OYJ                   STOCK EXCHANGE RELEASE 21 July 2005 at 3:45
pm.

Citycon expands to Estonia, acquiring Tallinn's Rocca al Mare Shopping
Centre

Citycon Oyj specialising in retail premises, has today acquired the
Rocca al Mare
Shopping Centre in Tallinn, the capital of Estonia. Citycon also
acquired the
neighbouring land with city planning for future extension. The
right of
possession was transferred to Citycon at the date of acquisition. The
total debt-
free purchase price was EUR 62.1 million and the net yield of the
existing
shopping centre at the date of the transaction was 8.5 per cent
excluding the
additional land. This acquisition opens the Baltic market to
Citycon and
contributes to the company's expansion strategy in Scandinavia and
the Baltic
countries.

"Citycon acquired its first shopping centre in the
Baltic area and will start to
build its extension of 25.000 sq.m. as soon as
all permits have been obtained and
subject to successful marketing of the
retail premises. Citycon has now
implemented its growth strategy by investing
in prominent shopping centres in
Sweden and Estonia. We are actively looking
for possibilities to continue our
growth both in these areas and in Finland",
says Citycon's CEO Petri Olkinuora.

Rocca al Mare's occupancy rate is close
to 100 per cent. The shopping centre's
anchor tenants are the Finnish retail
chains Prisma and Hobby Hall. The estimated
total sales volume of the shopping
centre for 2004 was EUR 37.0 million, with
roughly 4.5 million customers
visiting annually.

The aim of the potential extension project is to improve
the property's
competitiveness and ensure its solid commercial position in the
future. The
permitted building volume of the land acquired for the extension
is 25,000 sq.m.
Citycon expects to start the extension project already this
year provided that
all necessary approvals will be obtained. The extension is
scheduled for
completion within three years. Estimated investment of the
extension project will
be approximately EUR 20 million. Once the extension is
complete, the annual net
yield of the shopping centre is expected to exceed
the present net yield.

Rocca al Mare key figures:

                       
       Current          After extension, estimate     
 Built, year           
       1998 and 2000    2008                          
 Leasable area, m2     
       28,400           48,400                        
 Number of shops       
       105                                            
 Number of parking lots
       1,100            1,820                         
                       
                                                      
Citycon will initially
finance the acquisition through a bank loan arranged by
Nordea Bank Finland
Plc.

Citycon is Finland's market leader in the shopping centre business,
owning a
total of 16 shopping centres in the Helsinki Metropolitan Area and
other regional
centres in Finland, as well as the Ã…kersberga shopping centre
in Sweden as of 1
July 2005.

In addition to the shopping centres, Citycon
owns 127 supermarket and shop
properties in Finland. The market value of
Citycon's property portfolio was
approximately EUR 754.7 million on 30 June
2005, of which shopping centres
accounted for 60.9 per cent and supermarkets
and shops for 39.1 per cent.

Helsinki, 21 July 2005

CITYCON OYJ
Board of
Directors

Further information:
CEO Petri Olkinuora, tel. +358 9 6803 6738
or
(mobile) +358 400
333256
petri.olkinuora@citycon.fi

Distribution:
Helsinki Stock
Exchange
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www.citycon.fi