Nordic listed retail property specialist Citycon has signed an agreement to opportunistically sell two non-core shopping centres in Norway for €145.4 mln, reflecting a net initial yield of 5.2% and in line with the latest IFRS valuation of book value.
Under the agreement, Citycon will divest Buskerud centre to the Norwegian property investor Aurora Eiendom and Magasinet centre to the Oslo Opportunity II fund and Vedal Investor.
The transaction is estimated to close during Q1/2022.??
'These divestments continue to follow Citycon' s strategy to efficiently recycle capital out of non-core assets in order to narrow our focus on larger, grocery and municipal service-anchored urban hubs with direct connection to public transportation and development potential,' said F. Scott Ball, Citycon's CEO.
He added: 'The proceeds from this transaction allow us to further strengthen our investment grade balance sheet and provide the flexibility to pursue targeted and disciplined acquisitions such as the Barkabystaden residential deal, which showcases efficient capital recycling and a commitment to enhancing our existing necessity-based urban hubs, while diversifying the income of our portfolio through an increasing share of residentials in our portfolio.'
