The Nordic Investment Bank (NIB) and the Finland-based company Citycon have agreed on a loan amounting to €30 million to finance the development of a shopping center south of downtown Stockholm, in the district of Liljeholmen.
The new shopping center will follow strict environmental standards and apply a whole building approach for sustainable property development, which were essential factors in NIB's decision to participate in the financing of the project. NIB's loan is an important addition to the project, which will cost €180 million in total. The maturity of the loan is 10 years.
The energy consumption of buildings and properties in the industrial countries is estimated at up to 40%.
"The new center will take into account principles of sustainable property development by using the newest technology, with solutions for energy efficiency and water use. District heating and cooling will also enhance energy efficiency", says NIB's Vice-President Nils E. Emilsson.
Citycon is aiming for the international LEED rating (Leadership in Energy and Environment Design) for the construction of the shopping center. The LEED rating requires, among other things, sustainable site development, water savings, energy efficiency and environmental-friendly choices of materials and resources.
"We are very happy to be able to fulfil the tight requirements of NIB's lending in the current market situation. This is a concrete example of the importance and benefits of sustainable activities. Sustainable site development has secured us long-term financing from a highly valued lender", says Citycon's Chief Financial Officer Eero Sihvonen.
The shopping center in Liljeholmen is in the midst of a growing residential area with excellent public transportation connections. The building work on the new shopping center started in May 2007 and when it is finalised, according to schedule in October 2009, the center will have a leasable area of 28,000 m² for some 90 businesses. The shopping center in Liljeholmen is Citycon's largest single development project.
The loan agreement was signed 24 June 2008 in Helsinki.