Finnish listed retail specialist Citycon has bought the Arabia shopping centre in Helsinki, Finland, for just less than EUR 20 mln from Tapiola Group.
Finnish listed retail specialist Citycon has bought the Arabia shopping centre in Helsinki, Finland, for just less than EUR 20 mln from Tapiola Group.
Arabia is located in the fringe of Helsinki’s city centre, and has a gross leasable area of 14,000 m2, with 11,400 m2 of retail premises over 31 shops. It is 93% let. The net initial yield on the acquisition price is around 6% but it is expected to grow rapidly to 7% after planned commercial development actions.
Arabianranta is a former industrial area that has been converted into an urban residential and campus area during the past decades.
'The centre fits Citycon’s strategy like a glove: we invest in shopping centres located in growing city centres,' said Michael Schönach, head of Citycon’s Finnish Operations.
Citycon financed the acquisition from its existing credit facilities. The acquisition will increase rental income and improve the profitability of Citycon’s Finnish operations. It is also expected to be earnings per share accretive.
Following the acquisition, Citycon owns 36 shopping centres and 41 other retail properties in Finland, Sweden, Estonia and Lithuania.
