Citycon bags Högdalen Centrum in Stockholm

Listed Finnish retail specialist Citycon has acquired the Högdalen Centrum shopping centre in Stockholm for SEK 207.5 mln (EUR 23 mln). The vendor is Centeni AB, the owner of the CentrumKompaniet shopping centre portfolio in Stockholm.

Högdalen Centrum was the first property put up for sale by The Royal Bank of Scotland after the banking giant took full control of the 10-property strong portfolio earlier this month.

PropertyEU reported in early May that RBS was considering a sale of the Centeni portfolio, the former joint venture company established by UK private investment firm Boutlbee and collapsed investment bank Lehman Brothers.

Högdalen Centrum is located in southern Stockholm, some five kilometres from the city centre. It has a gross leasable area of 14,100 m2, with 11,000 m² of retail premises and 3,100 m² of offices. On the acquisition date, the net initial yield on the investment is 6.5% before planned maintenance investment.

'Locally, Högdalen Centrum is a very well-known shopping centre providing local services. It is situated by a metro station and bus terminal, in the middle of a dense and growing residential area,' said Ulf Attebrant, Citycon's Vice President of Swedish operations. Citycon owns two other shopping centres in the neighbouring area: Liljeholmstorget Galleria and Fruängen Centrum.

Citycon financed the acquisition from its existing credit facilities.