Citycon (OMXH: CTY1S) has acquired Citytalo property in Isokatu 20-22, Oulu, Finland for 13.5 million on debt-free basis. The building lies next to Citycon owned shopping centre Galleria in the heart of the city. Citycon has aspirations of an extension and redevelopment of Galleria and therefore wanted to buy Citytalo. Citytalo has a leasable area of 2800 square metres and is fully leased to clients such as Clas Ohlson (OMX: CLAS B), Gina Tricot and DinSKo. It is currently yielding 6.5% annual return.
The seller is Oulu evangelic Lutheran parish with 50% and some private individuals for the other half. Development of Oulu city centre had been on halt for a number of years as fighting over whether to build an underground parking area called Kallioparkki (now Kivisydän) went on. Finally last month building work for it was allowed to start. It did not take long after that for the other plans to nudge forward. S-cooperative has previously expressed interest to have a Sokos department store in the premises.
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