Citycon Oyj has acquired the entire stock of a real estate company called Kiinteistö Oy Karjalan Kauppakeskus in a transaction executed on 31 May 2005. Karjalan Kauppakeskus owns commercial premises in IsoKristiina Shopping Centre located in Lappeenranta. After the transaction Citycon is the main owner of the IsoKristiina premises. Citycon's total debt free investment is amounted to EUR 7.9 million.
The transaction relates to Citycon's growth strategy to expand its business in Finland, Scandinavia and the Baltic countries.
As a result of the transaction, Citycon's commercial property holding in IsoKristiina increased with approx. 7,600 square metres to approx. 17,300 square metres of the total area of approx. 19,800 square metres. The remaining area in the complex consists of mainly office premises. The net yield percentage of the property on its purchase price at the date of the transaction was roughly 8.3 per cent.
IsoKristiina Shopping Centre is the biggest shopping centre in South-East part of Finland with the total sales of approx. EUR 44.2 million and with about 2.6 million customers in 2004.
Source: Citycon
