Citycon to acquire €120 million shopping center in Sweden (SE)

Citycon has signed a joint venture agreement with NCC Property Development for the (re)development and letting of Mölndals Galleria. An existing old retail property is planned to be demolished and a new center with around 25,000 m² of leasable area is being built in the same location. The project is being developed in co-operation with the municipality of Mölndal.

The center will have about 70 different shops, restaurants and service units. Mölndals Galleria will be a modern urban city gallery focusing on daily necessities. It will be anchored by a grocery store and other day-to-day services. The construction of the new shopping center is expected to start during 2015, after the finalization of an ongoing zoning process, and will open to the public in early 2018.
Both Citycon and NCC will participate in the (re)development project and Citycon intends to purchase NCC’s share after the project is completed. Citycon’s total investment is estimated at around €120 million.
“Mölndals Galleria fits perfectly with Citycon’s strategy to invest in urban shopping centers driven by daily needs and situated in locations with strong demographics. This investment will further enhance our position as one of the shopping center industry leaders in Sweden and the whole Nordic region, whilst also increasing the share of Sweden within our portfolio,” says Marcel Kokkeel, CEO of Citycon.
“Our aim is to develop a living and attractive area which serves the needs of visitors and the growing number of residents in the area. The shopping center project is part of an extensive development plan of the Mölndal city center which also includes new offices and apartments”, says Katarina Wåhlin Alm, NCC Property Development.
Mölndals Galleria is the second shopping center project developed by Citycon and NCC together. In Finland, Citycon and NCC are currently constructing a 25,000 m² extension to the Iso Omena shopping center in the Helsinki area.
Source: Citycon