Citycon acquires residential property in Sweden, strengthening its existing portfolio and increasing its residential exposure
CITYCON OYJ Investor News 7 February 2022 at 17.40 hrs
Citycon has signed a forward commitment agreement with Botrygg to acquire a newly developed residential asset in Stockholm, Sweden for approximately EUR 69.5 million. The brand-new property will consist of over 200 well-appointed rental and freehold apartments and is located in the growing and dynamic neighbourhood of Barkarbystaden, in close proximity to Citycon’s existing necessity-based assets in Kista and Jakobsberg. Barkarbystaden is one of northern Europe's largest and most expansive urban development areas.
The transaction has been structured as a forward commitment, whereby Citycon will make a deposit of EUR 6.6 million once construction begins in February 2022 and fund the remaining purchase price, pro-rata, at the completion of two construction phases in Q1/2024 and Q2/2024. The closing of the transaction will be after the completion of each phase with no additional obligations from Citycon before construction of each phase is complete.
“We are very pleased with the acquisition as it strengthens the market around our existing necessity-based assets in the area, while furthering the development of our residential portfolio and providing another concrete example of how we are diversifying our income by increasing the share of residentials in our portfolio,” says Erik Lennhammar, Citycon´s Chief Development Officer.
Citycon will share more details of the transactions in its earnings call scheduled for Thursday 17th February 2022 at 9.00 CET. Call-in details will be published separately later.
CITYCON OYJ
For further information, please contact:
Bret McLeod
Chief Financial Officer
Tel. +46 73 326 8455
bret.mcleod@citycon.com
Valtteri Piri
Manager, Investor Relations and Legal
Tel. +358 50 570 1022
valtteri.piri@citycon.com
Citycon is a leading owner, manager and developer of mixed-use real estate featuring modern, necessity-based retail with residential, office and municipal service spaces that enhance the communities in which they operate. Citycon is committed to sustainable property management in the Nordic region with assets that total approximately EUR 4.5 billion. Our centres are located in urban hubs in the heart of vibrant communities with direct connections to public transport and anchored by grocery, healthcare and other services that cater to the everyday needs of customers.
Citycon has investment-grade credit ratings from Moody's (Baa3), Fitch (BBB-) and Standard & Poor's (BBB-). Citycon Oyj’s shares are listed on Nasdaq Helsinki.
www.citycon.com