Nordic real estate investor NREP has acquired the Columbus retail centre in Helsinki, Finland from local player Citycon for €106.2 mln.
The deal for the necessity-based retail centre, in the expanding eastern Helsinki region, corresponds to its Q3 2021 valuation.
F. Scott Ball, Citycon’s CEO, said: 'Columbus demonstrates Citycon´s ability to create additional value through active asset management at every stage of the property life cycle. During Citycon´s ownership, Columbus has been transformed to a grocery-anchored urban hub, which has also been reflected in its increase in value.
'Furthermore, the transaction highlights the attractiveness of high-quality, Nordic real estate assets to investors. Following our recent near-term debt redemptions, we are investigating using some proportion of the proceeds to repurchase shares as given our share price is trading at a significant discount to EPRA NRV.'
NREP has unveiled a new retail strategy in recent times, renovating the Duoa shopping centre in Tampere and the Arabia shopping centre in Helsinki. NREP described the Colombus shopping centre in Vuosaari as 'regionally significant'.
'We are actively monitoring how the needs of citizens and businesses are evolving. We believe that people now and in the future need to make their daily purchases in their own neighbourhood and refresh themselves close to home. The city has set ambitious growth targets for Eastern Helsinki, so there will be even more demand for smooth everyday services and meeting places in the area,' said Joonas Lemström, director of NREP.
The Columbus shopping center, which covers approximately 22,000 m2, was built in 1996 and expanded in 2005. The BREEAM certification process has already begun by the previous owner, and NREP intends to continue this work. A solar panel installation project is underway. Projects related to heating, air conditioning and ventilation will be implemented in the coming years as part of a long-term maintenance plan.
'Columbus Shopping Centre is an excellent addition to NREP's Nordic Income + fund, where we are looking for properties that generate a safe and steady cash flow,' concluded Lemström.
Citycon´s advisor in the transaction was MREC Oy.
