Citycon has entered into an agreement to purchase the Kristiine Shopping Centre in Tallinn, Estonia from one of the largest property developers in the Baltic countries, Pro Kapital, for approximately 105 million.
With a gross leasable area of 42,600 m², Kristiine is Tallinn's second-largest shopping center after Citycon's Rocca al Mare. The deal is expected to close during the first half of 2011 and is subject to approval by the Estonian competition authorities.
"This acquisition reflects Citycon's commitment and ability to implement the company's strategy of expansion in our core markets. Going forward, we will continue to pursue additional opportunities to invest our capital effectively and accretively and to grow and diversify our cash flows," says Yariv Marom, Citycon's Chief Investment Officer.
The Kristiine Shopping Centre is located on one of the main transportation corridors in the city center of Tallinn and has a large catchment area of 270,000 inhabitants. Major anchors include Prisma and Marks & Spencer. Built in phases in 1999 and 2002, Kristiine was expanded last autumn by more than 12,000 m² which strengthened the shopping center's tenant mix and offering.
Citycon will fund the acquisition from its existing credit facilities. The acquisition will increase rental income as well as profitability in Citycon's Baltic operations and is expected to be accretive to Citycon's earnings per share.
"As the developer, owner and operator of two shopping centers in Tallinn, Rocca al Mare and Magistral, Citycon welcomes Kristiine to its portfolio. Kristiine is a well-known and successful shopping center with 170 stores and high-quality tenants. It has also strong sale and footfall figures," states Harri Holmström, Citycon Oyj's Vice President, Baltic Operations.
Following the acquisition, Citycon will own and manage a total of 35 shopping centers and 46 other retail properties in Finland, Sweden, Estonia and Lithuania.
Source: Citycon Oyj