The letter of intent encompasses the creation of a joint venture that intends to acquire the shopping centre part of the property Arenan 2 from Klövern. The division of ownership in the jointly owned company will be 55 per cent Citycon and 45 per cent Klövern. Citycon will develop and implement the commercial concept for Globen Shopping in close co-operation with Klövern and the City of Stockholm. According to the current development plan the parties estimate a total investment, including acquisition of part of the property Arenan 2, of EUR 263M – EUR 295M.
The development of Globen Shopping is expected to mean more than doubling the size from the present approximately 20,000 sq.m., including an increased share of service and culture. is to transform Globen Shopping and Arenavägen from the current status as a withdrawn backside to a bustling and vibrant street serving the local community and visitors to the many sporting and cultural events taking place in the adjacent arenas.
The shopping centre has the potential to become a local hub for the new district which is to be developed in the Meatpacking District with development plans for around 4,000 homes and 10,000 workplaces.
"This partnership follows Citycon's on-going strategy to develop, own and manage urban community shopping centres in growing cities. The development project will bring us a unique position in one of the hottest emerging areas in Stockholm. The goal is to create a local centre and we will use the same successful concept as Liljeholmstorget Galleria, taking it to the next level. We are planning an exciting mix of chains, local stores, daily services, upgraded restaurants and cafés. We are delighted to be partnered with such an established and successful company as Klövern in delivering this modern and ambitious concept in a growing area of Stockholm," says Marcel Kokkeel, CEO of Citycon.
"Klövern looks forward to actively contributing to the development of a cohesive urban district around one of Stockholm's strongest brand names: Globen (The Globe). We are happy to have found a partner - Citycon - with passion for, and strong track record of developing attractive district centres. As a long-term owner of office properties we are convinced that the development of Globen Shopping will contribute to Klövern's clear objective of meeting strong demand for office space in the area, both existing and newly created space,” says Rutger Arnhult, CEO of Klövern.
Klövern and Citycon to Develop Globen Shopping
Sweden — Klövern and Citycon have signed a letter of intent for joint development of the shopping centre Globen Shopping, located just south of Stockholm's inner city. <br />
Maria Olsson Äärlahtmaria@nordicpropertynews.com