Nordic listed retail specialist Citycon and Canadian pension fund CPPIB have closed the acquisition of the giant Kista Galleria shopping centre in Stockholm.

Nordic listed retail specialist Citycon and Canadian pension fund CPPIB have closed the acquisition of the giant Kista Galleria shopping centre in Stockholm.

The two partners said they completed the SEK 4.6 bn (€530 mln) purchase of the scheme on Thursday. Under the terms of the deal, Citycon and CPPIB will each own half of the shopping centre.

Citycon and CPPIB have signed a stand-alone, asset-backed loan totalling SEK 2.3 bn to finance the investment. The five-year loan, secured by Kista Galleria, was granted by Skandinaviska Enskilda Banken, which also coordinated the transaction, together with Swedbank and Aareal Bank.

Citycon also said it would finance the rest of its stake by using existing credit facilities and that it would consider a share issue to raise equity. The details of the capital increase are being planned and are subject to approval by the shareholders' meeting to be held on 6 February 2013.

Citycon owns or manages a total of 38 shopping centres and 40 other retail properties in Finland, Sweden, Denmark, Estonia and Lithuania.