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Helsinki, Finland, Feb 12, 2008 - (ABN Newswire) - CITYCON OYJ Stock Exchange Release 12 February 2008 at 15.15 hrs
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 world's most 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
CITYCON OYJ Board of Directors
For further information, please contact: Petri Olkinuora, CEO GSM +358 (0)400 333 256
