Citycon Oyj - Company Announcement

Citycon Acquires Kista Galleria Shopping Centre in Stockholm Together with the Canada Pension Plan Investment Board (CPPIB) for approx. EUR 526 million (approx. SEK 4,600 million)

CITYCON OYJ            	Stock Exchange Release	19 December 2012 at 12:00 hrs

Today, Citycon Oyj and the Canada Pension Plan Investment Board (CPPIB), an
investment management organization investing the funds of the Canada Pension
Plan, jointly entered into an agreement to acquire the Kista Galleria shopping
centre in Stockholm for approx. EUR 526 million (approx. SEK 4,600 million)
from DNB Livsforsikring ASA, part of DNB Group, the largest financial group in
Norway. Citycon expects the first-year net yield to be approximately 5.5 per
cent. 

Kista Galleria has 90,000 square meters of gross leasable area (GLA), including
60,000 square meters of retail space and the remaining 30,000 square meters
comprising a hotel, student housing, healthcare premises and municipal
services. Kista Galleria has an annual footfall of approximately 18.1 million
visitors and annual sales of EUR 280 million. The center underwent a complete
renovation and large extension in 2002 and was further expanded in 2009. Under
the terms of the transaction, the shopping centre will be owned 50 per cent by
Citycon and 50 per cent by CPPIB. The transaction is expected to be finalised
in January 2013. 

“The strength of Kista Galleria is its location and traffic connections, which
generate a steady footfall of more than 50,000 daily visitors. More than
125,000 people live in Kista and in addition, more than 70,000 people work in
and around the Kista area,” says Marcel Kokkeel, Citycon Oyj's CEO. 

“This strategic acquisition offers us a unique opportunity to increase our
relevance in the eyes of international retailers, increase the quality of our
portfolio and at the same time substantially strengthen our position and market
share in Sweden where we already have nine shopping centres. The acquisition
will help us balance our portfolio geographically, as Sweden's share increases
from approx. 25% to 40% in regards to net rental income,” Kokkeel adds. 

Kista Galleria has established transport connections both in terms of public
transportation (metro station, commuter train and local buses) and access from
major highways. The highway system is currently being upgraded and expanded and
will make the center even more accessible in the next few years. 

Kista Galleria in figures

Built/red  Leasab  Number  Major tenants      Occupa  Turnov  Annual  Population
eveloped   le       of                        ncy, %  er in    numbe   of the   
 and        area,   shops                              2011,  r of     total    
 extended   m2      and                                SEK     visit   catchment
/ further           resta                              billi  ors      area /   
 extended          urants                             on      2011,    primary  
                                                               milli   catchment
                                                              on       area     
--------------------------------------------------------------------------------
1977       90.000  185     Åhléns, ICA,       98%     2.4     18.1    345,000/  
2002                        NewYorker, Clas                            125,000  
2009                        Ohlson, StayAt                             
                            Hotel (166                                          
                            rooms), SF Bio,                                     
                            H&M, KappAhl,                                       
                            Nilson,                                             
                            O'Learys, SATS                                      
--------------------------------------------------------------------------------

                                 Source: Kista Galleria Ab and Centrumutveckling


Kista Galleria will be Citycon's largest shopping centre by GLA. For CPPIB,
this is the first direct property investment in the Nordic countries. Citycon
will be responsible for the asset and property management of the shopping
centre based on market terms. 

“The involvement of CPPIB adds a seal of quality to this acquisition and also
to Citycon as a professional manager of shopping centres in the Nordics. Both
parties see potential in partnering also for other investment opportunities,”
says Nils Styf, Citycon's Chief Investment Officer. 

Citycon and CPPIB will jointly finance approximately half of the acquisition
with a stand-alone asset backed loan financing  based on five years maturity ,
and Citycon will finance the remainder of its share  from its existing lines of
credit and cash.  Citycon also considers possibilities to re-finance up to 50%
of the company's investment by issuing new equity through a capital increase.
The details of such capital increase are still in the planning stages and any
such decision is subject to approval by the shareholder's General Meeting. 

After the acquisition, Citycon will own a total of 38 shopping centres and 40
other retail properties. In addition, the company manages and leases two other
shopping centres without owning them. In total Citycon manages a portfolio of
roughly 1,090 thousand square meters. Of the company-owned shopping centres, 23
are located in Finland, 10 in Sweden, 4 in the Baltic countries and 1 in
Denmark that was acquired by Citycon last summer. Citycon's total portfolio
fair value will grow from 2.7 billion euros to approx. 3.2 billion euros after
the acquisition. 

Helsinki, 19 December 2012

CITYCON OYJ
Board of Directors


For further information, please contact:

Marcel Kokkeel, CEO
Tel +358 20 766 4521 or +358 40 154 6760
marcel.kokkeel@citycon.fi

or

Nils Styf, CIO
Tel. +46 733 5060 39
nils.styf@citycon.se


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