Citycon Oyj - Company Announcement

Citycon has completed the acquisition of Sektor Gruppen

CITYCON OYJ Stock Exchange Release 14 July 2015 at 5:00 p.m.

Citycon Oyj ("Citycon") has today completed the acquisition of all the shares
in the Norwegian shopping centre company Sektor Gruppen AS ("Sektor") from its
owners Joh Handel Eiendom 1 AS, Varner Invest AS and K&S Holding AS (the"Sellers") (the "Transaction"). 

The debt-free total purchase price payable by Citycon for all of the shares in
Sektor was EUR 1,467 million (NOK 12,320 million with exchange rate of 8.4).
The cash purchase price paid by Citycon today in connection with the closing of
the Transaction amounted to approximately EUR 540 million (NOK 4,538 million
with exchange rate of 8.4) after customary balance sheet adjustments, but it
may be further adjusted based on Sektor's updated, revised consolidated balance
sheet following the closing of the Transaction. These adjustments define the
possible adjustment cost that may be payable by Citycon or the Sellers. 

In addition to the cash purchase price for the Transaction, Citycon has today
paid the funds required for Sektor to implement the premature redemption of its
three secured bonds amounting to a total of approximately EUR 222 million (NOK
1,865 million with exchange rate of 8.4) as well as for the settlement of the
approximately EUR 42 million (NOK 350 million with exchange rate of 8.4)
existing shareholder loan granted by the Sellers to Sektor. These payments were
financed through a combination of (i) the proceeds of EUR 604 million from
Citycon's rights issue that was completed on 13 July 2015 and (ii) a drawdown
of EUR 222 million under the bridge financing facilities amounting originally
to a total maximum limit of EUR 400 million given by Danske Bank A/S, Helsinki
Branch and Pohjola Bank plc. The loans drawn down under the bridge financing
facilities will mature in June 2016. In addition, Sektor has obtained consents
regarding Sektor's current bank financing facilities amounting to approximately
EUR 671 million (NOK 5,639 million with exchange rate of 8.4) from the
respective lenders that such bank financing facilities will remain in force
after the closing of the Transaction until April 2016. 

Following the closing of the Transaction, Citycon considers available
alternatives to optimise its long term financial structure and refinance the
bridge financing facilities and the existing bank financing facilities of
Sektor before their respective maturity dates. Citycon intends to raise the
funds required for the refinancing through, among others, proceeds obtained
from potential divestments of non-core assets, bond issuances and bank debt. 

Citycon's outlook announced for the year 2015 regarding EPRA Operating profit
and EPRA Earnings does not yet take into account the effects of the
Transaction. As the EPRA EPS (basic) forecast announced by Citycon is based on
the current number of shares in the company, Citycon announced on 13 July 2015
that it had adjusted this forecast to reflect the combined property portfolio
of Citycon and Sektor and the increased number of shares due to the rights
issue completed on 13 July 2015. Citycon forecasts that its EPRA EPS (basic)
will be EUR 0.155-0.175. Citycon intends to update its guidance also in other
respects to reflect the effects of the Transaction in connection with the
publication of the Q2/2015 interim report on 15 July 2015. 

Upon the completion of the Transaction, Citycon's assets under management
increased from EUR 3.4 billion to EUR 4.9 billion and Citycon now owns a total
of 55 shopping centres and 25 other retail properties. 

Further information on the Transaction and its effects on Citycon has been
disclosed in Citycon's stock exchange releases of 25 May 2015 and 18 June 2015
as well as in the offering circular relating to the rights issue dated 18 June
2015. 


Helsinki, 14 July 2015

CITYCON OYJ

Investor and media enquiries:
Henrica Ginström
Vice President, Investor Relations and Communications
Tel. +358 50 554 4296
henrica.ginstrom@citycon.com


About Citycon

Citycon is a leading owner, manager and developer of urban grocery-anchored
shopping centres in the Nordic and Baltic region, managing assets that total
approximately EUR 5 billion and with market capitalisation of EUR 2 billion.
Citycon is the No. 1 shopping centre owner in Finland and Estonia and among the
market leaders in Norway and Sweden. Citycon has also established a foothold in
Denmark. www.citycon.com