With the € 1.47 billion acquisition, Citycon gains exposure throughout the entire Nordic region, while increasing its gross asset value by nearly 50%, from € 3.4 billion to € 4.9 billion.

“We’re very excited about this acquisition, which completes our Nordic presence. The transaction is a defining step forward in our goal to be the household name for Nordic and Baltic shopping centres. Sektor represents a perfect strategic fit for us, being recognized as a quality organization with an impressive track record, good assets and experienced management,” says Marcel Kokkeel, CEO of Citycon.

“We are happy to receive an owner with strong retail real estate experience and a long-term vision and investment horizon. Integrating Citycon’s wide experience, financial strength and strong management with ours will provide the optimum conditions for further growth and development, while creating scale advantages and synergies,” says Eirik Thrygg, CEO of Sektor.

“International retailers often analyze the Nordics as one market and now we can offer them a complete Nordic platform. Citycon and Sektor share the same asset strategy of shopping centres located in the heart of communities, in urban crosspoints, and catering to customers’ everyday needs,” continues Marcel Kokkeel.

Sektor’s portfolio comprises a total of 34 shopping centres, of which 20 are fully or majority-owned, 4 are minority-owned, 2 rented and 8 managed shopping centres. Most of the centres (approx. 95%) are located in Norway’s three main economic hubs: the Oslo, Bergen and Stavanger regions. The annual number of visitors in Sektor’s shopping centres is more than 60 million. Sektor’s largest tenants include Norway’s biggest grocery chain NorgesGruppen and clothing company Varner Gruppen, whose brands include e.g. Dressmann, Bik Bok and Cubus. The Sektor portfolio has a strong occupancy rate of approximately 97%.

The acquisition price of € 1.47 billion reflects a net initial property yield of approximately 5.2% and the transaction is expected to be accretive to earnings per share as of 2016.

“Our two largest shareholders, Gazit-Globe and Canada Pension Plan Investment Board are supportive of the transaction and our target is to maintain a strong financial profile with leverage of 40-45% Loan to Value , a conservative level in the Nordic perspective” Marcel Kokkeel adds.