Citycon has sold five properties comprising 46,800m² located across Finland to a Finnish investment fund, eQ Finnish Real Estate, for a total value of approximately €74m. The sales price is above the IFRS fair value for the properties.
“These divestments are part of Citycon’s strategy to recycle capital and focus on urban, grocery-anchored shopping centres in the Nordics and Baltics,” said Nils Styf, CIO at Citycon.
The portfolio consists of the following assets: Sinikalliontie 1 Koy (Espoo), Kontulan Asemakeskus Koy (Helsinki), Lentolan Perusyhtiö Oy (Kangasala), Lillinkulma Koy (Kaarina) and Länsi-Keskus Koy (Espoo).
According to the outlook announced by Citycon on 28 April 2016, the company forecast that its Direct Operating profit will in 2016 increase by €20-€34m compared to the previous year based on the existing property portfolio. Due to the divestment of the non-core portfolio, Citycon has today adjusted the outlook and forecasts that its Direct Operating profit will change by €16-€30m from the previous year. The EPRA Earnings and EPRA Earnings per share (basic) guidance remains unchanged.
