Citycon Oyj - Company Announcement

Citycon and NCC to start the first phase of shopping centre Iso Omena’s extension

CITYCON OYJ      Stock exchange release      31 May 2013 at 09:00 hrs

Citycon Oyj and NCC Property Development Oy (NCC) have today purchased the land
plot and building rights for retail premises and apartments adjacent to the
future Matinkylä metro station on the western metro line. At the same time, the
companies agreed to jointly start the first phase of the Iso Omena extension
and (re)development project covering a 30,000 square metre extension connected
to the future metro station. 

Citycon and NCC have made a EUR 120 million investment decision concerning the
first phase of the extension based on a 50-50 partnership. The estimated cost
for the three phase project including partial (re)development of the existing
shopping centre totals approximately EUR 175 million. Citycon estimates the
yield at completion when stabilized to be between 6.5 and 7.0 per cent. The
construction work will commence in June and the extension will be ready in two
stages. The metro centre transport terminal and adjacent retail space will be
opened at the same time as the western metro line, in late 2015. The shopping
centre extension will be completed in the late summer of 2016. 

The extension project will be done in close co-operation with Länsimetro Oy.
The end station of the western metro line, now under construction, will be
located under the shopping centre Iso Omena, along with a bus terminal.
Länsimetro Oy, jointly owned by the city of Espoo and the city of Helsinki,
will fully finance the construction cost of the bus terminal and commuter
parking. 

The extension expands the leasable retail area of the centre by approximately
25,000 square metres. The retail area of Iso Omena will be approximately 75,000
square metres after the project and the gross leasable area approximately
90,000 square metres. The pre-leasing rate is about 35 per cent. The retail mix
of Iso Omena will increasingly be focused on fashion stores and a wide offering
of restaurant services. Citycon estimates the footfall of the centre to
increase by 60 per cent and the sales to increase by 45 per cent after the
extension. 

Marcel Kokkeel, CEO of Citycon comments: ”Citycon's strategy is to manage, own
and develop grocery anchored urban shopping centres in growing cities. Iso
Omena's operating performance over the last couple of years has been strong in
terms of footfall and NRI growth with close to a 100 per cent occupancy rate.
Iso Omena is uniquely placed to further strengthen its position in one of the
fastest growing and most affluent parts of the Helsinki metropolitan area”. 

Marko Juhokas, Senior Vice President of Development and Sustainability in
Citycon continues: ”The tenant demand for Iso Omena is good and we want to
secure the best tenant mix for the extension. The combination of a large retail
offering, public services, library, bus terminal and versatile restaurants will
make Iso Omena a lively and interesting place for our customers to spend time
and enjoy shopping”. 

Iso Omena is Citycon's largest shopping centre in Finland and it offers over
120 different retail stores and services. The shopping centre was opened in
2001 and Citycon purchased the centre in 2007. In 2012, Iso Omena generated
sales of EUR 260.4 million from a footfall of 8.8 million visitors. 


Helsinki 31 May 2013
CITYCON OYJ
Marcel Kokkeel
CEO


For further information, please contact:
Marko Juhokas, Senior Vice President of Development and Sustainability
Tel. +358 20 766 4422 or +358 40 735 4997
marko.juhokas@citycon.fi

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


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