Real estate investor Citycon sells the Kristiine center in Tallinn for a gross purchase price of approximately EUR 129 million, which will be paid in cash.
According to the company, the transaction will take place at a discount of approximately nine percent compared to the latest book value. The deal is estimated to be completed by mid-December.
The funds are intended to be used to reduce the amount of debt and strengthen Citycon’s investment-level balance sheet.
“The divestment shows the strength of our properties and we are convinced that we will exceed our 380 million divestment target by the end of 2024”, Citycon’s director of real estate development Erik Lennhammar commented in the announcement.
According to the release, the total divestments realized during this year will reach 334 million euros with the deal.
In Citycon’s strategy, the company focuses on selling centers that are not part of its core business and concentrates on its Nordic real estate portfolio.
Trade magazine reported at the end of last month Citycon has put two of its large shopping centers in Tallinn up for sale: the Kristiine Center bought in 2011 and the Rocca al Mare Center bought in 2005.
Correction at 2:47 p.m.: A typo related to the paragraph describing Citycon’s strategy was corrected from the article.