Citycon Oyj - Company Announcement

Citycon Acquired Högdalen Centrum Shopping Centre in Stockholm

CITYCON OYJ             Stock Exchange Release                 31 May 2011 at
16:00 hrs 

Citycon acquired today the Högdalen Centrum shopping centre in Stockholm for
SEK 207.5 million (approximately EUR 23.1 million) from Centeni AB, controlled
by The Royal Bank of Scotland. Högdalen Centrum is located in southern
Stockholm, some five kilometres from the city centre. It has a gross leasable
area of approximately 14,100 square metres, with 11,000 square metres of retail
premises. On the acquisition date, the net initial yield on the investment is
approximately 6.5 per cent before planned maintenance investment. 

“Locally, Högdalen Centrum is a very well-known shopping centre 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 centres
in the neighbouring area: Liljeholmstorget Galleria and Fruängen Centrum. As
the developer, owner and operator of these centres, 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
centre, since 12,000 people pass through the metro and bus terminal every day.
For Citycon, a shopping centre's location is an important criterion; investment
in shopping centres located in city centres 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 centre's growing customer base,”
continues Ulf Attebrant. 


Högdalen Centrum in figures                                                     
--------------------------------------------------------------------------------
- 
Gross leasable area, sq.m.               approx. 14,100                         
--------------------------------------------------------------------------------
for retail premises, sq.m.               approx. 11,000                         
--------------------------------------------------------------------------------
for offices and storage premises, sq.m.  approx. 3,100                          
--------------------------------------------------------------------------------
Number of outlets                                                             39
--------------------------------------------------------------------------------
Built/redeveloped in                     1959/1995                              
--------------------------------------------------------------------------------
Sales, EUR million, 2010                                                    43.4
--------------------------------------------------------------------------------
No. of parking spaces                                                        560
--------------------------------------------------------------------------------
Anchor tenants                           ICA, MatDax, Lindex, Dressman, Apoteket
--------------------------------------------------------------------------------
Economic occupancy rate, %                                                  92.3
--------------------------------------------------------------------------------


Citycon financed the acquisition from its existing credit facilities. This
purchase will increase rental income and improve the profitability of Citycon's
Swedish operations. It is also expected to be earnings per share accretive. 

Following the acquisition, Citycon will hold - either under its ownership or
lease - a total of 36 shopping centres and 46 other retail properties in
Finland, Sweden, Estonia and Lithuania. In Sweden, Citycon owns a total of nine
shopping centres. 

Helsinki, 31 May 2011

CITYCON OYJ
Marcel Kokkeel

For further information, please contact:
Marcel Kokkeel, CEO
Tel. +358 40 154 6760
marcel.kokkeel@citycon.fi

Ulf Attebrant, Vice President, Swedish Operations
Tel. +46 703 415 317
ulf.attebrant@citycon.se

Distribution:
NASDAQ OMX Helsinki
Major media
www.citycon.com