Citycon has agreed to acquire the shopping center Magistral, located in the Mustamäe district of Tallinn, for approximately €16.5 million. Magistral, constructed in 2000, has a leasable area of 9,450 m² and provides significant opportunities for development and extension.
In connection with the property transaction, Citycon has also agreed on purchasing some 8,500 m² of building rights for €2 million, provided that the pending change in zoning plan becomes legally valid. Completion of the deal is subject to approval by the Estonian competition and other authorities and is expected to take place by the end of August.
"Magistral has an excellent location, and it will strengthen Citycon's market position in the Tallinn region as a prime retail property. The shopping center also offers opportunities for commercial improvements," says Harri Holmström, Vice President, Baltic operations. The location of Magistral, the Mustamäe district of Tallinn, is the city's second-largest district with 64,000 inhabitants, at a distance of 5 km from downtown Tallinn.
The center houses some 50 stores in three stories and its anchor tenant is the grocery retailer Rimi. Other key tenants include Koduextra, Seppälä, Rademar and Tiimari, alongside the very popular bowling alley. In 2006, around 3.6 million customers visited the shopping center, generating total sales of approximately €16 million. The center's occupancy rate is 100%.
Shopping center Magistral as a grocery anchored neighbourhood shopping center suits Citycon's property portfolio well. After closing of the deal, the company owns three shopping centers in the Baltic countries: two in Estonia and one in Lithuania.