Finnish retail specialist Citycon is to join forces with Nordic construction group NCC for the development and letting of Mölndals Galleria, a 32,000 m2 retail scheme located south of Gothenburg in Sweden.

Finnish retail specialist Citycon is to join forces with Nordic construction group NCC for the development and letting of Mölndals Galleria, a 32,000 m2 retail scheme located south of Gothenburg in Sweden.

NCC and Citycon will form a joint company for the development project, which will involve the demolishment of the existing old retail property and the construction of a new complex with around 70 stores and 1,000 parking spaces.

As part of the agreement, NCC and Citycon will acquire the existing retail property from the local municipality and will both own an equal stake in the project company.

Following completion, Citycon said it intends to purchase NCC’s share representing a total investment of €120 mln.

NCC will remain responsible for project development and construction.

Construction of Mölndals Galleria is scheduled to commence in 2015, with opening planned for the third quarter of 2017.

'We see a long-term and strong constellation in which Citycon’s expertise in concept development and contacts with retail players, together with NCC’s project development expertise, will form a strong team,' said Katarina Wåhlin Alm, country manager of NCC Property Development Sweden.

'Mölndals Galleria fits perfectly with Citycon’s strategy to invest in urban shopping centres driven by daily needs and situated in locations with strong demographics. This investment will further enhance our position as one of the shopping centre industry leaders in Sweden and the whole Nordic region, whilst also increasing the share of Sweden within our portfolio,' said Marcel Kokkeel, CEO of Citycon.

Mölndals Galleria is the second shopping centre project developed by Citycon and NCC together. In Finland, Citycon and NCC are currently constructing a 25,000 m2 extension to the Iso Omena shopping centre in the Helsinki area.