The gross purchase price for the assets is 1,483 million Swedish krona (147 million euros) and exceeds the assets appraised value. The shopping centres to be divested, Tumba, Högdalen, Fruängen, are located in the Stockholm area and the transaction is estimated to close during Q1/2021.
F. Scott Ball, Citycon’s CEO, comments on the transaction:
“This divestment follows Citycon’ s strategy to focus on larger, grocery /municipal services-anchored, urban hubs with a connection to transportation links and which provide further densification potential to add residential units, offices and other complimentary uses. Though there has been minimal investment activity in this sector over the last twelve months, this sale and its price confirms both the value and liquidity of our assets and is consistent with our programmed recycling of capital. Specifically, the sale demonstrates the continued value and attractiveness of high-quality Nordic real estate assets to investors, and proceeds from the divestment will be utilized to strengthen our balance sheet and advance our strategy of Diversification through Densification”.