Citycon divests two non-core centres in Norway

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Nov 29, 2022, 21:57 ET

CITYCON OYJ Investor News 29 November 2022 at 23.50 hrs

HELSINKI, Finland, Nov. 30, 2022 /PRNewswire/ -- Citycon has signed an agreement to sell two non-core shopping centres in Norway for approximately NOK 1250 million (approximately EUR 120.8 million). Both assets are unencumbered, and the gross purchase price is within 2.5% of Q4/2021 book values. According to the agreement, Citycon will divest Sjøsiden centre in Horten and Down Town in Porsgrunn to Scala Eiendom AS. The transaction is estimated to close during Q4/2022.

"These divestments follow Citycon' s strategy to efficiently recycle capital and to focus on larger, grocery and municipal service-anchored urban hubs with direct connection to public transportation and development potential. The proceeds from this transaction will be used to repay debt and to further strengthen our investment grade balance sheet. The transaction showcases the liquidity of Citycon´s portfolio and highlights the attractiveness and desirability of necessity-based, inflation protected Nordic retail assets to investors. This transaction represents the first tranche of our stated goal of selling EUR 500 million of non-core assets over the next 24 months. It also provides further evidence of the validity of our asset values even those that are non-core", says F. Scott Ball, Citycon's CEO.

For further information, please contact:
Sakari Järvelä
Vice President, Corporate Finance and Investor Relations
Tel. +358 50 387 8180
[email protected]

Citycon is a leading owner, manager and developer of mixed-use real estate featuring modern, necessity-based retail with residential, office and municipal service spaces that enhance the communities in which they operate. Citycon is committed to sustainable property management in the Nordic region with assets that total approximately EUR 4.5 billion. Our centres are located in urban hubs in the heart of vibrant communities with direct connections to public transport and anchored by grocery, healthcare and other services that cater to the everyday needs of customers.

Citycon has investment-grade credit ratings from Moody's (Baa3), Fitch (BBB-) and Standard & Poor's (BBB-). Citycon Oyj's shares are listed on Nasdaq Helsinki.

www.citycon.com