Helsinki-listed Citycon is selling a portfolio of three shopping centres in the Stockholm area of Sweden to Nordic real estate investor Niam.
Niam is to pay SK1,483 million (c€147 million) for the centres, which Citycon said exceeds the assets’ appraised value. The assets are in Stockholm’s Tumba (pictured above), Högdalen and Fruängen suburbs and have a total area of 57,000 sq m.
Citycon CEO F. Scott Ball said that the disposal follows Citycon’ s strategy of focusing on larger, grocery or municipal services-anchored, urban hubs with transport connections and potential to add residential, offices and other complementary uses.
“Although there has been minimal investment activity in this sector over the last 12 months, this sale and its price confirms both the value and liquidity of our assets and is consistent with our programmed recycling of capital,” he added.
Niam describes the assets as “commuter hubs” and head of acquisitions Daniel Andersson said that the deal significantly expands the company’s 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,” Andersson said.