Citycon will develop a new shopping center in Hervanta, a district of the city of Tampere. Hervannan Liikekeskus Oy, a company in which Citycon now has a holding of 75%, will be a part of the new shopping center. Gross leasable area of the new building will be about 8,300 m². The total gross area of the shopping center will be about 31,400 m² with a total gross leasable area of roughly 15,500 m². About 450 parking spaces will be built under and on the street level to serve the customers of the shopping center.
The owner of the new building will be a real estate company called Kiinteistö Oy Kauppakeskus Tampereen Hermanni, which is a wholly-owned subsidiary of Citycon. The shopping center will house three grocery stores, numerous specialty stores, service businesses as well as restaurants and cafes.
The new shopping center will after its completion serve approx. 35,000 inhabitants in its catchment area and the people working in the numerous offices in the neighboring area. The new city district of Vuores to be established next to Hervanta will also utilize the commercial services of the future shopping center.
Change in the city plan required by the project became legally binding in May 2005 and an application for building permit is expected to be submitted during June. Citycon has today signed an agreement on the purchase of the land required for the expansion from the city of Tampere for a purchase price of 1.75 million. The final execution of the deal requires that the decisions made by the city of Tampere will become legally valid.
The total investment in the project is estimated to amount to approx. 25.3 million and the net yield of the shopping center is estimated to exceed 8%. The expansion is planned to be opened in spring 2007.
The total gross leasable area of the current Hervanta commercial centre amounts to approx. 7,200 m², of which Citycon holds roughly 5,000 m². Citycon's main lessees in the current premises are Kesko, Spar and Nordea. The center will continue operating during the whole construction period uninterrupted.