Helsinki-listed retail specialist Citycon has acquired the Kristiine Shopping Centre in Tallinn, Estonia from Pro Kapital for some EUR 105 mln. With a gross leasable area of 42,600 m2, Kristiine is Tallinn's second-largest shopping centre after Rocca al Mare, which is also owned by Citycon. Pro Kapital is one of the leading property developers in the Baltics.
Helsinki-listed retail specialist Citycon has acquired the Kristiine Shopping Centre in Tallinn, Estonia from Pro Kapital for some EUR 105 mln. With a gross leasable area of 42,600 m2, Kristiine is Tallinn's second-largest shopping centre after Rocca al Mare, which is also owned by Citycon. Pro Kapital is one of the leading property developers in the Baltics.
The deal is expected to close during the first half of 2011 and is subject to approval by the Estonian competition authorities. The Finnish company now has three shopping centres in Tallinn: aside from Kristiine and Rocca al Mare, it also owns and operates Magistral. In total, Citycon has forked out EUR 300 mln on its Estonian portfolio.
'This acquisition reflects Citycon's commitment and ability to implement the company's strategy of expansion in our core markets,' said Yariv Marom, Citycon's Chief Investment Officer. 'Going forward, we will continue to pursue additional opportunities to invest our capital effectively and accretively and to grow and diversify our cash flows.'
The Kristiine Shopping Centre is located on one of the main transportation corridors in the city centre of Tallinn and has a large catchment area of 270,000 inhabitants. Major anchors include Prisma and Marks & Spencer. Built in phases in 1999 and 2002, Kristiine was expanded last autumn by more than 12,000 m2 and now boasts some 180 stores.
Citycon will fund the acquisition from its existing credit facilities. The acquisition will increase rental income as well as profitability in Citycon's Baltic operations and is expected to be accretive to Citycon's earnings per share.
London-based Eaton Group acted as adviser on the deal. The company also mediated on behalf of Citycon's other two acquisitions in the Estonian capital. 'The sale of the successful Kristiine Shopping Center is another sign of the improvement we are seeing in the Estonian economy
and the long-term outlook for this promising nation,' noted CEO Erik Busch-Christensen.
Following the acquisition, Citycon will own and manage a total of 35 shopping centres and 46 other retail properties in Finland, Sweden,
Estonia and Lithuania.
