Citycon is acquiring the Tumba Centrum shopping centre in the municipality of Botkyrka, south of Stockholm from Doughty Hanson & Co for SEK 550 mln (around EUR 60.8 mln). The deal is expected to close by the end of January 2007. On the acquisition date, the shopping centre's initial net yield on the purchase price stands at 5.4%.
Citycon is acquiring the Tumba Centrum shopping centre in the municipality of Botkyrka, south of Stockholm from Doughty Hanson & Co for SEK 550 mln (around EUR 60.8 mln). The deal is expected to close by the end of January 2007. On the acquisition date, the shopping centre's initial net yield on the purchase price stands at 5.4%.
In a statement on Friday, Citycon, a Helsinki-based property investment company focused on retail, announced it had signed an agreement to buy all the shares in Tumba Centrumfastighets, a subsidiary of Doughty Hanson & Co, which owns Tumba Centrum.
Typical for shopping centres in Sweden, the property includes not only retail premises but also apartments and offices.
The eight-building property was constructed in stages from 1952 to 2002. Some 18,600 m2 of the total of 31,000 m2 is taken up with 30 retail outlets. The anchor tenants are the fashion and clothing chains KappAhl, H&M and Dressmann, while ICA and COOP represent the grocery business.
In 2005, the shopping centre recorded approximately 2.9 million customer visits and total sales of over SEK 310 mln (EUR 34.2 mln), Citycon said.
Tumba Centrum's occupancy rate is at 100% and has remained high since 2000. The shopping centre has parking facilities for around 600 vehicles. Citycon said the mall is a major commuter hub for those working in the Stockholm region.
'It will also be possible to refurbish and extend the shopping centre, with a view to strengthen Tumba Centrum's position further and to better serve the centre's widening customer base. We intend to take immediate measures to extend and develop the property', Citycon's ceo Petri Olkinuora said.
Citycon is the Finnish market leader in the shopping centre property business. It owns a total of 19 shopping centres in the Helsinki Metropolitan Area and other regional centres of Finland. Following the closing of the Tumba Centrum acquisition, it will own 13 shopping centres and retail properties in the Stockholm and Gothenburg regions in Sweden. In the Baltic countries, Citycon owns the Rocca al Mare shopping centre in Tallinn, Estonia and the Mandarinas shopping centre in Vilnius, Lithuania.
