The company's subsidiary Citycon Oyj and the Canada Pension Plan Investment Board (CPPIB) jointly entered into an agreement to acquire the Kista Galleria shopping center in the Swedish capital from DNB Livsforsikring ASA, part of DNB Group, the largest financial group in Norway.
Citycon and CPPIB will jointly finance approximately half of the acquisition with a stand-alone asset backed loan financing based on five years maturity.
Citycon's share in the bank financing is NIS 650 million ($173 million), and it will finance the remainder of its share of NIS 650 million from its existing lines of credit and cash.
The transaction is expected to be finalized in January 2013. Citycon expects the first-year net yield to be approximately 5.5%.