On 20 July 2006, Citycon agreed to sell a portfolio of non-core properties to a fund managed by Kenmore Property Group Limited. Closing of such transaction took place yesterday. One property that was originally part of the deal was excluded from the final transaction, so the total number of sold-off properties came to 75 and the final purchase price to €73.8 million. After the transaction, Citycon's Supermarkets and Shops portfolio will consist of 52 properties in Finland.
The fair value of the sold-off properties totalled €67.9 million on 30 June 2006. Citycon will book a gain on sale before taxes of €5.8 million in the third quarter. The positive impact of the transaction to the company's 2006 EPS is approximately €0.01 and to 2006 profit approximately €2.1 million taking into account the gain on sale, transaction costs, lost net rental income for the fourth quarter and taxes.