Citycon has signed an agreement to buy all Tumba Centrumfastighets AB shares from Doughty Hanson & Co for approximately €60.8 million (SEK 550 million). The company owns Tumba Centrum, a shopping center in the municipality of Botkyrka, south of Stockholm. On the acquisition date, the shopping center's initial net yield on the purchase price stands at 5.4%. The deal is expected to close by the end of January 2007.
The property includes not only retail premises but also apartments and office premises, which is typical of shopping centers in Sweden. With a total leasable area of around 31,000 m², some 18,600 m² of which are retail premises, the shopping center has around 30 retail outlets. Anchor tenants are the fashion and clothing chains KappAhl, H&M and Dressmann while ICA and COOP represent the grocery business. In 2005, the shopping center recorded approximately 2.9 million customer visits and total sales of over SEK 310 million (including VAT). Currently at 100%, Tumba Centrum's occupancy rate has remained high since 2000. The shopping center has parking facilities for around 600 vehicles.
Consisting of eight buildings, Tumba Centrum was constructed in stages between 1952 and 2002. A commuter rail station and bus station are located adjacent to the center and thanks to its excellent connections Tumba Centrum is a major commuter hub for those working in the Stockholm region. Located in the south of the Botkyrka municipality, around 25-minutes by rail from the Stockholm Central Railway Station, the shopping center has a catchment area with a population of around 55,000, a number which is predicted to grow.
"This acquisition is our 13th in Sweden and it is in line with our growth strategy and will strengthen Citycon's market position in the shopping-center sector in Sweden and the Stockholm region," describes Petri Olkinuora, Citycon Oyj's CEO. "Tumba Centrum is a lively, local center with an excellent location and should provide good development and refurbishment opportunities, which, we believe, will also result in improved yield in the future."
"It will also be possible to refurbish and extend the shopping center, with a view to strengthen Tumba Centrum's position further and to better serve the center's widening customer base. We intend to take immediate measures to extend and develop the property," adds CEO Olkinuora.
Source: Citycon
