Yesterday, Citycon agreed with YIT Rakennus Oy to build a new retail center in Kaarina, five kilometres from downtown Turku, in the district of Piispanristi which is occupied by other retailers as well, such as the Prisma hypermarket.
The site has permitted building rights for a total of around 7,500 m², some 5,600 m² of which will be used to construct a retail building for Tokmanni Oy. Citycon has concluded a ten-year lease with Tokmanni Oy for premises within the building and a covered outdoor shopping area of 700 m².
This is Citycons first lease agreement with Tokmanni Oy. Tokmanni Oy is a Finnish retail company operating currently more than 100 stores including, among others, such concepts as Tokmanni, Tarjoustalo, Maxi-Makasiini, Säästötalo Robinhood and Vapaa Valinta. Tokmannis estimated total sales for 2006 are €500 million.
The project investment totals around €8.2 million and net return on the investment is 6.7%. Construction of the building for Tokmanni Oy is scheduled for completion by 1 March 2007. The remaining permitted building rights will be exercised at a later stage of the project.
The completion of this retail building project will strengthen Citycons position in the Turku region.