Citycon divests Kristiine keskus shopping center in Estonia reaching EUR 334 million in divestments year to date

CITYCON OYJ   Investor News   19 November 2024 at 14:20 hrs

Citycon has signed a binding agreement to divest Kristiine keskus in Tallinn, Estonia for a gross purchase price of around EUR 129 million all cash. This divestment is in line with the company’s strategy to divest of non-core assets and focus on its core, Nordic urban portfolio. The transaction reflects around 9% discount to the latest IFRS book value. The deal is estimated to close by mid-December 2024 and is subject to the competition authority’s approval.

Citycon has a strong divestment pipeline of non-core assets with over EUR 300 million under LOI or advanced negotiations after this announcement. The proceeds from this transaction will be used to repay debt and to further strengthen Citycon’s investment grade balance sheet.

“This divestment demonstrates the strength of our assets, and we are confident that we will exceed the divestment target of EUR 380 million set for year 2024.  It is in line with our strategy of focusing on our core markets and strengthening our balance sheet,” says Erik Lennhammar, Citycon’s Chief Development & Investment Officer.

Interim CEO, F. Scott Ball: “This in another decisive move, following the previous divestments and suspension of the dividend, which reinforces the company’s strategy to focus on core fortress assets in urban markets in the Nordics and to further strengthen our investment grade quality balance sheet.” 

CITYCON OYJ

For further information, please contact:

Media contact request through:
Pia Grahn
Communications Director
Tel. +46 73 037 1722
pia.grahn@citycon.com

Investor contact requests through:
Anni Torkko
Investor Relations Manager
Tel. +358 45 358 0570
anni.torkko@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 predominantly in urban market in the Nordics.  The company is committed to sustainable property management in the Nordic region with assets that total approximately EUR 4.0 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 rating from Standard & Poor's (BBB-). Citycon Oyj’s shares are listed on Nasdaq Helsinki.

www.citycon.com