Citycon has agreed to sell a portfolio of three shopping centres in Sweden to Nordic real estate private equity firm Niam for SEK 1,483 million (€147 million).
The shopping centres, totaling over 57,000 square meters, located in Tumba, Högdalen and Fruängen, all of which are suburbs of Stockholm in Sweden. The transaction is estimated to close during Q1/2021.
“Though there has been minimal investment activity in this sector over the last twelve months, this sale and its price confirms both the value and liquidity of our assets and is consistent with our programmed recycling of capital. Specifically, the sale demonstrates the continued value and attractiveness of high-quality Nordic real estate assets to investors, and proceeds from the divestment will be utilized to strengthen our balance sheet and advance our strategy of Diversification through Densification,” said F. Scott Ball, Citycon’s CEO, comments on the transaction.
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“With these acquisitions, we are significantly expanding our property portfolio in Stockholm. The properties offer a strong cash flow with a majority of tenants in groceries and other necessity driven retail as well as community services and housing. All hubs are directly adjacent to rail-bound traffic and we are very much looking forward to further develop them together with existing tenants and the municipalities in question,” said Daniel Andersson, Head of Acquisitions Sweden.