Citycon has reached an agreement with Skanska to build a new retail center in Lentola, Kangasala, some 13 kilometres from downtown Tampere. The retail center's leasable area totals around 12,000 m², of which approximately half will be leased to Tokmanni Oy, based on a long-term lease. The project investment totals around €16.6 million and initial net yield on the investment will be 7.0%.
Negotiations are currently underway over the lease of other premises within the retail center. The new retail center will be opened during the autumn of 2007. The purchase price's payment and the title's transfer to Citycon will take place at the time.
The property investment will strengthen Citycon's market position and enhance retail service offerings in the Tampere region.