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Real Estate & Construction / 3 Jul 2015

Borenius advised Citycon on EUR 57 million forward sale of education and retail property

We advised Citycon on the EUR 57 million forward sale of the Porin Asema-aukio property to the Swedish property company Hemsö. The sale covers the new campus of Satakunta University of Applied Sciences (SAMK) that is currently under construction.

Citycon is the sole owner and developer of the project, and the ownership of the property will be transferred to Hemsö when the construction is completed and the facilities have been delivered to SAMK, which is estimated to take place in May 2017. The new SAMK campus will be located in the city centre of Pori, next to the railway station. The old office and retail building located on the plot has been partly demolished, and it will be replaced by new buildings that will house SAMK’s educational facilities. Citycon was selected as the developer of the campus project in early 2014 in a tender process organised by the city of Pori, and the construction was started in early 2015. A total of 14,000 square metres of new floor space will be constructed and 9,000 square metres will be redeveloped. Of the new property covering 23,000 sq. m., 19,200 sq. m. will be in SAMK’s use on a 20-year lease. In addition to SAMK, the current K-supermarket grocery store will remain as tenant. The property is fully let. A BREEAM sustainability certificate will also be sought for the project.

Citycon Oyj is a leading owner, developer and manager of urban grocery-anchored shopping centres in the Nordic and Baltic regions. The company manages assets that total approximately EUR 3.4 billion and its shares have a market value of approximately EUR 1.8 billion.

Hemsö is Sweden’s leading private owner of properties for community services. The business is based on owning, managing and developing properties for residences for the elderly, education, care facilities and premises for the legal sector. Hemsö has properties in Sweden, Germany and Finland.

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