Citycon sells Strömpilen – completes big Norwegian deal

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Citycon has completed the acquisition of Norwegian Sektor Gruppen, the biggest shopping center deal in the Nordics this year.

At the same time, the shopping center Strömpilen in Umeå, Sweden, and 13 Finnish grocery store properties are sold.

”A natural step in our strategy to refine our portfolio to major Nordic cities, focusing on grocery-anchored shopping centres in urban crosspoints,” says Nils Styf, Chief Investment Officer at Citycon.

City con announced Tuesday evening it has signed an agreement to sell the non-core shopping centre Strömpilen in Umeå to Niam. The shopping centre covers 27,000 square meters of gross leasable area and the purchase price amounts to approximately 39 million EUR. The transaction is expected to close in October.

Citycon has been an active owner and manager of the shopping centre since 2007.

“The sale of Strömpilen is a natural step in our strategy to refine our portfolio to major Nordic cities, focusing on grocery-anchored shopping centres in urban crosspoints,” says Nils Styf, Chief Investment Officer at Citycon.

The property is located 5 kilometers outside the center of Umeå, along the river bank, with ICA Maxi and Systembolaget as key tenants.

“This was an opportunity for Niam to acquire a commercial property with development potential in northern Sweden’s fastest growing city. The property represents a good complement to the shopping Niam previously acquired,” says Johan Bergman, CEO of Niam.

The shopping competition  in Umeå is about to transform since Ikea’s new project Umeå south is scheduled to open next year.

City con has also divested a 60,000 square meters portfolio of 13 grocery store properties located across Finland to a Finnish property fund for a total value of approximately 76 million EUR.

“These divestments are part of Citycon’s strategy to recycle capital and focus on mid-to-large sized urban, grocery-anchored shopping centres in the Nordics and Baltics,” says Nils Styf.

The portfolio consists of the following assets: Lahden Kauppakatu (Lahti), Varkauden Relanderinkatu (Varkaus), Runeberginkatu 33 (Porvoo), Kirkkonummen Liikekeskus (Kirkkonummi), Vantaan Säästötalo (Vantaa), Porin Isolinnankatu (Pori), Kotkan Keskuskatu (Kotka), Vaakalintu (Riihimäki), Orimattilan Markkinatalo (Orimattila), Minkkikuja 4 (Vantaa), Karjaan Ratakatu (Raasepori), Hakunilan Keskus (Vantaa) and Puijonlaakson Palvelukeskus (Kuopio).

After this, Citycon has completed the acquisition of all the shares in the Norwegian shopping centre company Sektor Gruppen AS from its owners Joh Handel Eiendom 1 AS, Varner Invest AS and K&S Holding AS.

The debt-free total purchase price payable by Citycon for all of the shares in Sektor was 1,467 million EUR. The cash purchase price paid by Citycon today in connection with the closing of the transaction amounted to approximately 540 million EUR.