Citycon will sell the apartments under construction in connection with the Liljeholmstorget shopping center, located in Stockholm, to Heba Fastighets AB for approximately SEK 176 million (approx. €17.6 mln.). The apartments to be built have been incorporated into a separate real estate company, and detached from the shopping center.
The total number of apartments is 72 and the leasable area totals some 6,100 m². The apartments to be built in Liljeholmen are rental apartments and, currently, they are under construction in three stories above the shopping center. Citycon will bring the residential development to an end and the deal is expected to be finalized in April 2010 after the completion of the apartments.
"We are pleased that the deal will bring us a good business partner to Liljeholmstorget shopping center," says Petri Olkinuora, Citycon's CEO. "The building permit required the construction of apartments in connection with the shopping center. We were planning to sell the apartments from the very beginning, since Citycon concentrates on retail premises, particularly on shopping centers and rental apartments are not part of the Citycon strategy," he continues.
The construction of Liljeholmstorget shopping center is Citycon's largest development project ever. Citycon launched the construction work in May 2007 and the shopping center will be opened in October 2009.