Citycon's shopping center acquisition finalized, loan financing agreement signed (SE)

Citycon Oyj and the Canada Pension Plan Investment Board (CPPIB) announced the signing of an agreement with DNB Livsforsikring ASA, on the acquisition of the Kista Galleria shopping center in Stockholm, for a sale price of approximately SEK 4.6 billion.

The closing of the acquisition took place today on January 17, 2013. The acquisition price corresponds to approximately €530 million with the closing date's exchange rate. According to the terms and conditions of the acquisition, Citycon and CPPIB will each own one half of the shopping center.

The details of the acquisition have been described in the company's stock exchange and press releases published on December 19, 2012, and on the company's website.

On January 14, 2013, Citycon and CPPIB signed a stand-alone asset backed loan agreement totaling SEK 2,290 million (approx. €265 million) in order to finance the shopping center investment. The loan is secured by Kista Galleria. The loan is granted by Skandinaviska Enskilda Banken AB (publ) which also coordinated the transaction, and Swedbank AB and Aareal Bank AG. (The loan period is for five years)

At the time of closing the acquisition, Citycon also announced that it would finance the rest of its share by using existing credit facilities and that it would consider arranging a share issue in order to raise equity. The details of the capital increase are being planned and are subject to approval by the shareholder's General Meeting to be held on 6 February 2013.

Citycon owns or manages a total of 38 shopping centers and 40 other retail properties in Finland, Sweden, Denmark, Estonia and Lithuania.

Source: Citycon Oyj

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