Citycon's Shopping Centre Acquisition Kista Galleria Finalized, Loan Financing Agreement Signed
Citycon's Shopping Centre Acquisition Kista Galleria Finalized, Loan Financing
CITYCON OYJ Stock Exchange Release 17
January 2013 at 13:30
On 19 December 2012, Citycon Oyj and the Canada Pension Plan Investment Board
(CPPIB) announced the signing of an agreement with DNB Livsforsikring ASA, on
the acquisition of the Kista Galleria shopping centre in Stockholm, for a sale
price of approximately SEK 4.6 billion. The closing of the acquisition took
place today on 17 January 2013. The acquisition price corresponds to
approximately 530 million euros with the closing date’s exchange rate.
According to the terms and conditions of the acquisition, Citycon and CPPIB
will each own one half of the shopping centre.
The details of the acquisition have been described in the company's stock
exchange and press releases published on 19 December 2012, and on the company's
On 14 January 2013, Citycon and CPPIB signed a stand-alone asset backed loan
agreement totalling SEK 2,290 million (approx. EUR 265 million) in order to
finance the shopping centre investment. The loan is secured by Kista Galleria.
The loan period is for five years. The loan is granted by Skandinaviska
Enskilda Banken AB (publ) which also coordinated the transaction, and Swedbank
AB and Aareal Bank AG.
At the time of closing the acquisition, Citycon also announced that it would
finance the rest of its share by using existing credit facilities and that it
would consider arranging a share issue in order to raise equity. The details of
the capital increase are being planned and are subject to approval by the
shareholder’s General Meeting to be held on 6 February 2013.
Citycown owns or manages a total of 38 shopping centres and 40 other retail
properties in Finland, Sweden, Denmark, Estonia and Lithuania.
Helsinki, 17 January 2013
For further information, please contact:
Eero Sihvonen, Chief Financial Officer and Executive Vice President
Tel. +358 020 766 4459 or +358 50 557 9137
Marcel Kokkeel, CEO
Tel. +358 20 766 4521 or +358 40 154 6760
NASDAQ OMX Helsinki