Finnish real estate company Citycon has sold the Stopp Tune shopping centre in Sarpsborg, Norway for €20 mln, bringing its year-to-date divestment total to €354 mln.
The sale price closely matches the asset’s IFRS fair value, after accounting for deferred taxes, according to the company.
Citycon said it is divesting the small, car-oriented shopping centre to align with its strategy of selling non-core assets. The expected closing in mid-December will generate funds to reduce debt and bolster the company’s investment-grade credit rating.
Erik Lennhammar, Citycon’s chief development & investment officer, commented: ‘This divestment, in addition to the earlier announced divestments, follows Citycon’s strategy to focus on larger, grocery and municipal service-anchored Nordic urban hubs with direct connection to public transportation. With this transaction we continue to show commitment to our divestment targets and to further strengthen the company’s balance sheet.’
The Stopp Tune shopping centre, located in Sarpsborg’s Tunejordet area near Highway E6, opened in 1993 and has a strong local presence. It has a gross leasable area of 13,400 m2 and retail premises of 12,600 m2. Significant renovations were carried out in 2004 and 2020 to create a more appealing mix of shops open throughout the week for a broader customer base.
Citycon owns, manages, and develops mixed-use properties in Nordic urban areas with a total value of approximately €4 bn.
