Citycon, the Finnish retail specialist that has embarked on a €950 mln sales programme to concentrate on its largest assets, is taking full control of one of Sweden’s premiere shopping centres.
Canada’s CPPIB has agreed to sell out of its 50% stake in the Krista Galleria Shopping Centre that it has held since 2013 when the pair acquired the nearly 100,000 m2 asset.
It is one of the largest malls in the Nordics, with chief development officer Erik Lennhammar saying it was important the company owned 100%. No value was made public. Neverthless, the transaction is a significant one considering the centre was valued at more than €526 mln when the pair bought it from DNB Livsforsikring ASA, part of DNB Group, a large financial group in Norway.
Kista Galleria is located in the Järva area of Stockholm with 130 shops and restaurants, Filmstaden Kista, O'Leary's Bowling & Gokart, student apartments and a range of services with a gym, library, and health centre.
It comes as Citycon embarks on a programme to prune its €4 bn retail portfolio spanning 33 centres in Sweden, Finland, Norway, Denmark and Estonia.
Accompanying its full year 2023 statement, Citycon said on 15 February that despite a strong operational result, currencies continued to impact its reported figures. During the year, there has been adverse volatility of the NOK and SEK, which are at twenty-year lows.
‘Based on this expectation we are increasing our previously disclosed divestment target by the end of 2024 with a target of €950 mln over the next 24 months. Citycon owns some of the best, most urban, large fortress assets in the Nordics. The 12 largest assets (out of 33) make up approximately 80% of the value of our total assets. We will focus our efforts on these largest properties that offer a much stronger growth trajectory and divest the remaining properties.’
