Citycon opportunistically divests two non-core centres in Norway at attractive pricing

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CITYCON OYJ   Investor News   7 February 2022 at 17.40 hrs

Citycon has signed an agreement to opportunistically sell two non-core shopping centres in Norway for approximately EUR 145.4 million (based on exchange rates as of 3 February 2022), corresponding a net initial yield of 5.2% and in line with the latest IFRS valuation of book value. According to the agreement, Citycon will divest Buskerud centre to Aurora Eiendom AS and Magasinet centre to Oslo Opportunity II AS and Vedal Investor AS. The transaction is estimated to close during Q1/2022.

“These divestments continue to follow Citycon’ s strategy to efficiently recycle capital out of non-core assets in order to narrow our focus on larger, grocery and municipal service-anchored urban hubs with direct connection to public transportation and development potential. Furthermore, the transaction highlights the attractiveness and desirability of high-quality, Nordic retail assets to investors. The proceeds from this transaction allow us to further strengthen our investment grade balance sheet and provide the flexibility to pursue targeted and disciplined acquisitions such as the Barkabystaden residential deal, which showcases efficient capital recycling and a commitment to enhancing our existing necessity-based urban hubs, while diversifying the income of our portfolio through an increasing share of residentials in our portfolio,” says F. Scott Ball, Citycon’s CEO.

Citycon will share more details of the transaction in its earnings call scheduled for Thursday 17th February 2022 at 9.00 CET. Call-in details will be published separately later.


For further information, please contact
Bret McLeod
Chief Financial Officer
Tel. +46 73 326 8455

Valtteri Piri
Manager, Investor Relations and Legal
Tel. +358 50 570 1022

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.