Nordic real estate company Citycon is selling its Tallinn-based Kristiine keskus shopping centre for €129 mln, a 9% discount on its latest book value.
This sale is expected to be completed by mid-December 2024, pending regulatory approval.
The latest divestment is part of Citycon's plan to sell non-core assets and concentrate on its main properties in the Nordic region. This brings Citycon's total divestments for the year to €334 mln.
Kristiine, Tallinn's fourth-largest shopping centre, has served the city for over two decades, offering a wide range of shops and entertainment. Conveniently located near the city centre with excellent transport links, it underwent phases of construction between 1999 and 2002, with a significant expansion in 2010 and a refurbishment in 2019.
Erik Lennhammar, Citycon’s chief development and investment officer, said: ‘This divestment demonstrates the strength of our assets, and we are confident that we will exceed the divestment target of €380 mln set for the year 2024. It is in line with our strategy of focusing on our core markets and strengthening our balance sheet.’
Interim CEO, F. Scott Ball, added: ‘This is another decisive move, following the previous divestments and suspension of the dividend, which reinforces the company’s strategy to focus on core fortress assets in urban markets in the Nordics and to further strengthen our investment grade quality balance sheet.’
Following this sale, Citycon has a further €300+ mln in non-core assets either under letter of intent or in advanced sale negotiations. The funds from the Kristiine sale will be used to reduce debt and improve Citycon's already strong financial position.
Citycon owns a portfolio totaling approximately €4 bn in value, combining retail, residential, office, and municipal facilities, primarily in urban areas.
