Citycon buys €145m portfolio of three shopping centres in Norway

Nordic shopping centre specialist Citycon has agreed to acquire the remaining interest it did not already own in Sektor Portefølje II AS, a portfolio of three shopping centres in Norway.

The transaction covers three assets, Stovner Senter, Torvbyen and Markedet. Citycon has managed the shopping centres since 2015 and also owned 20% of the portfolio.

The transaction cost amounts to €145 mln, of which Citycon assumes existing debt of €135 mln and a cash consideration for shares of approximately €10 mln. Following the transaction, Citycon has 100% ownership of the portfolio.

In conjunction with this transaction an agreement has been signed to sell the 10,700 m2 Markedet asset for €12 mln.

'With the acquisition of this portfolio, we will strengthen our position in Norway. We see value in this portfolio and are in the process of selling Markedet, the smallest of the three assets. We have owned and managed the centres since 2015 and we know the assets well. With our extensive knowledge and full ownership of these assets, we believe we can create value for our shareholders,' said F. Scott Ball, CEO at Citycon.

Stovner is located in Oslo and procides 43,000 m2 of space with an occupancy rate of 90%. The 14,100 m2 Torvbyen is located in Fredrikstad and is 95% leased.

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