Citycon Oyj has signed an agreement to acquire four retail centers located in Backa, Hindås, Landvetter and Floda in the Greater Gothenburg area, Sweden. The closing is expected to take place in February 2006. Debt free purchase price of the properties amounted to SEK 239 mln. (approx. €25.4 mln.) and the annual net yield to 7.2% at the time of the signing.
Leasable area of the acquired retail centers totals 25,709 m² and the average occupancy rate amounts to 96%. All properties are located in rapidly growing areas within 35 kilometres from downtown Gothenburg. The properties are well established neighbourhood shopping centres housing also public services.
The acquisition of the retail centers follows the acquisition of Lindome retail center in Greater Gothenburg area announced by Citycon in November. The acquisitions are in line with Citycon's strategy to expand its business in Scandinavia and the Baltic countries and will strengthen Citycon's position in the Swedish real estate market.
Lindome retail center, Greater Gothenburg area.