Citycon acquires Högdalen Centrum shopping center in Stockholm (SE)
Wednesday 1 June 2011
Citycon has acquired the Högdalen Centrum shopping center in Stockholm for SEK 207.5 million (approximately €23.1 million) from Centeni AB, controlled by The Royal Bank of Scotland.
Högdalen Centrum is located in southern Stockholm, some 5 km from the city center. It has a gross leasable area of approximately 14,100 m², with 11,000 m² of retail premises. On the acquisition date, the net initial yield on the investment is approximately 6.5% before planned maintenance investment.
“Locally, Högdalen Centrum is a very well-known shopping center providing local services. It is situated by a metro station and bus terminal, in the middle of a dense and growing residential area. Citycon owns two other shopping centers in the neighboring area: Liljeholmstorget Galleria and Fruängen Centrum. As the developer, owner and operator of these centers, we expect to benefit from notable synergies,” says Ulf Attebrant, Citycon’s Vice President, Swedish Operations.
Almost 40,000 inhabitants live in Högdalen Centrum’s immediate catchment area. Its excellent location by transport connections brings daily shopping to the center, since 12,000 people pass through the metro and bus terminal every day. For Citycon, a shopping center’s location is an important criterion; investment in shopping centers located in city centers or other dense urban areas is a key part of the company’s efforts toward sustainable development.
“We are delighted about this purchase and see plenty of scope for developing Högdalen Centrum and its revenues. Our aim is to strengthen Högdalen Centrum’s position further, in order to better serve the center’s growing customer base,” continues Attebrant.