Citycon and Klövern intend to develop ‘Globen Shopping’ together
CITYCON OYJ Press release 31 August 2017 at 8:30
Citycon and Klövern have signed a letter of intent for joint development of the shopping centre ‘Globen Shopping’, located just south of Stockholm’s inner city. The aim is to contribute to the realisation of the City of Stockholm’s vision for Söderstaden – a versatile and urban city district filled with experiences.
The letter of intent encompasses the creation of a joint venture that intends to acquire the shopping centre part of the property Arenan 2 from Klövern. The division of ownership in the jointly owned company will be 55 per cent Citycon and 45 per cent Klövern. Citycon will develop and implement the commercial concept for Globen Shopping in close co-operation with Klövern and the City of Stockholm. According to the current development plan, the parties estimate a total investment of EUR 260-290 million, including the acquisition of part of the property Arenan 2.
The development of the Globen Shopping is expected to expand the existing space of approximately 20,000 sq.m. by more than double, including an increased share of services and culture. The objective of Citycon’s and Klövern’s development project is to transform Globen Shopping and Arenavägen from the current status as an undeveloped area to a bustling and vibrant street serving the local community and visitors to the many sporting and cultural events taking place in the adjacent arenas.
The shopping centre has the potential to become a local hub for the new area in the Meatpacking District with development plans for around 4,000 apartments and 10,000 workplaces. Already today there is a wide range of public transportation options, such as metro, trams and several bus routes connecting southern Stockholm with the inner city.
”This partnership follows Citycon’s on-going strategy to develop, own and manage urban community shopping centres in growing cities. The development project will bring us a unique position in one of the hottest emerging areas in Stockholm. The goal is to create a local centre and we will use the same successful concept as Liljeholmstorget Galleria taking it to the next level. We are planning an exciting mix of chains, local stores, daily services and more emphasis on leisure, including upgraded restaurants and cafés. We are delighted to be partnered with such an established and successful company as Klövern in delivering this modern and ambitious concept in a growing area of Stockholm,” explains Marcel Kokkeel, CEO of Citycon.
”Klövern looks forward to actively contributing to the development of a cohesive urban district around one of Stockholm’s strongest brand names: Globen (The Globe). We are happy to have found a partner – Citycon – with passion for, and strong track record of developing attractive district centres. As a long-term owner of office properties, we are convinced that the development of Globen Shopping will contribute to Klövern’s clear objective of meeting strong demand for office space in the area, both existing and newly created space,” says Rutger Arnhult, CEO of Klövern.
For further information, please contact:
Chief Executive Officer
Tel. +358 40 154 6760
Citycon Oyj (Nasdaq Helsinki: CTY1S) is a leading owner, developer and manager of urban grocery-anchored shopping centres in the Nordic and Baltic regions, managing assets that total EUR 5 billion and with market capitalisation of EUR 2 billion. For more information about Citycon, please visit www.citycon.com