NCC and Citycon have a joint-owned project company for the development and leasing of Mölndal Galleria. NCC and Citycon each hold 50 percent of the project company. As previously communicated, Citycon will acquire NCC’s share when the galleria has been completed and the contractual conditions have been fulfilled.
The parties have now agreed on the more detailed terms and conditions and it is now clear that Citycon will acquire NCC’s 50-percent share of the project company later this year. The purchase consideration for NCC’s 50-percent shareholding is based on a property value corresponding to EUR 56M.
Mölndal Galleria will comprise approximately 70 stores accounting for approximately 24,000 square meters of leasable floor space and with parking available directly adjacent to the mall. The tenants include H & M, Lindex, ICA and Systembolaget (Swedish Alcohol Retailing Monopoly).
At present, approximately 85 percent of the leasable floor space has been leased. NCC will not provide any rental guarantees for vacant premises when the sale to Citycon is finalized.
Mölndal Galleria is scheduled to be opened in September this year. Citycon will take possession of NCC’s share of the project company in connection with the grand opening of the Galleria. The sale of the holding will have a positive impact on earnings in the NCC Property Development business area in the third quarter of 2018. As the buyer participated as co-owner and co-financier from the start of the project, NCC's development margin is lower than in other trading projects where NCC takes full development risk.
NCC’s objective is to minimize the environmental impact and add value for customers and society. Mölndal Galleria is certified under BREEAM, the world’s foremost environmental certification system.
Citycon to Buy NCC’s Share of Mölndal Galleria
Sweden — Citycon is to acquire NCC’s 50 percent share of Mölndal Galleria for a purchase consideration based on a property value corresponding to EUR 56M.<br />
Maria Olsson Äärlahtmaria@nordicpropertynews.com