Citycon Oyj has signed an agreement on 18 May 2005 under which Citycon buys 75 percent of the shares of Armada Exploaterings AB. Purchase price was 49.9 million Swedish crowns (5.4 million). Armada Exploaterings AB owns the Åkersberga shopping centre located northeast of Stockholm. The total value of the properties belonging to the shopping centre is approximately 440 million Swedish crowns (47.7 million).
The seller is Armada Fastigheter AB which is owned by the municipality of ÃsterÃ¥ker. Following the transaction Armada Fastigheter AB will continue to own 25% of Armada Exploaterings AB. The title to the acquisition target will be transferred to Citycon on 1 July 2005.
Citycon and the municipality of ÃsterÃ¥ker will start to develop the shopping centre together. Citycon will buy the outstanding shares of Armada Exploaterings AB after the expansion is completed. This is Citycon's first foreign investment as a part of its internationalization strategy.
The Ã
kersberga shopping centre is an important part of the centre of the municipality of ÃsterÃ¥ker, which is located about 30 kilometres from Stockholm. About 37,000 inhabitants currently live within the catchment area of the shopping centre. Ã
kersberga is a growth centre, and its population and number of jobs are estimated to increase significantly.
Citycon will start to develop the Ã
kersberga shopping centre by expanding it, and modernizing the existing premises. The shopping centre has 33,000 square metres of retail premises, offices and residential. Currently about 80 companies operate in the shopping centre, of which about 40 are retail businesses.
The first international investment
"The acquisition of the Ã
kersberga shopping centre is the first international investment as a part of Citycon's growth strategy. Our aim is to carry out more foreign investments and build a property investment company that operates throughout the Nordic countries and Baltic states, and takes an active role as owner of its properties.
"Ã
kersberga has great development potential. Active development of the property can have great benefits to the shopping centre's customers and the tenants of the real estate," said Petri Olkinuora, CEO of Citycon.
Source: Citycon
