Nordic real estate manager Citycon has agreed to sell the Kristiine keskus shopping centre in Estonia for around €129m.
The real estate manager said the sale of the shopping centre in Tallinn, which represents a 9% discount to its latest book value, is in line with the company’s strategy to sell non-core assets and concentrate on its core Nordic urban portfolio.
Citycon said it has a pipeline of non-core assets, with over €300m currently under letter of intent or in advanced negotiations. The proceeds from this transaction will be used to repay debt and further strengthen Citycon’s balance sheet.
Erik Lennhammar, Citycon’s chief development and investment officer, said: “This divestment demonstrates the strength of our assets, and we are confident that we will exceed the divestment target of €380m set for year 2024.
“It is in line with our strategy of focusing on our core markets and strengthening our balance sheet.”
Citycon’s interim CEO, F Scott Ball, said: “This is 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.”
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