Citycon has signed a binding agreement to divest Kristiine Keskus in Tallinn, Estonia for a gross purchase price of around €129m all cash. This divestment is in line with the company’s strategy to divest non-core assets and focus on its core, Nordic urban portfolio. The transaction reflects around 9% discount to the latest IFRS book value. The deal is estimated to close by mid-December 2024 and is subject to the competition authority’s approval.
Citycon has a strong divestment pipeline of non-core assets with over €300m under LOI or advanced negotiations after this announcement. The proceeds from this transaction will be used to repay debt and to further strengthen Citycon’s investment-grade balance sheet.
“This divestment demonstrates the strength of our assets, and we are confident that we will exceed the divestment target of €380m set for the year 2024. It is in line with our strategy of focusing on our core markets and strengthening our balance sheet,” said Erik Lennhammar, Citycon’s Chief Development & Investment Officer.
Interim CEO, F. Scott Ball: “This is another decisive move, following the previous divestment and suspension of the dividend, which reinforces the company’s strategy to focus on core fortress assets in urban markets in the Nordics and to further strengthen our investment grade quality balance sheet.”
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