Citycon Oyj is expanding its shopping center business operations in Rovaniemi, Finland, by acquiring from Kapiteeli Plc all the shares of the real estate company Kiinteistö Oy Lintulankulma on 1 November 2005. The real estate company owns roughly a 14 per cent share of the gross leasable floor area of the Sampokeskus shopping centre. The debt-free purchase price totalled €2.1 million. Following this acquisition, Citycon will own Sampokeskus in its entirety. The net yield of this investment, inclusive of asset transfer tax, was 8.1 per cent at the time of acquisition.
Rovaniemi, the capital city of the Province of Lapland in Finland, is a lively university town with approximately 90,000 people in some 39,000 households in its operating region. The Sampokeskus shopping center, located in the heart of Rovaniemi, is the most significant shopping center in the area, visited by 3.3 million customers in 2004, with sales totalling roughly €19 million. The gross leasable area of the center, focusing on retail sales of speciality goods, totals 13,465 m². This acquisition enhances Citycon's possibilities for further improvement of the shopping center.
Source: Citycon
