Acquisition of €120m Swedish shopping center for Сitycon

Published: September 11th, 2014

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Citycon and NCC Property Development have signed a joint venture agreement to redevelop and let the Mölndals Galleria.

The old retail property will be demolished and the erection of a leasable area of 25000m² building is being planned. The municipality of Mölndal is co-operating on this new venture.

The new center will offer shoppers a range of 70 shops, service units and restaurants. Its daily necessity focus will be met with its grocery store anchor and other services for day-to-day needs. Construction is set to commence during 2015, once the zoning process has been finalized and the public opening target is planned for early 2018.

Both entities will take part in the project and NCC’s share will be acquired by Citycon on completion of the project. The total investment made by Citycon is estimated to be about €120m.

This acquisition fits into Citycon’s future plans to invest in daily needs urban shopping centers and to enhance their place and boost their share of Sweden in their portfolio. The project will also include new apartments and offices to serve the growing population in the area.

The Mölndals Galleria is the second shopping center project to benefit from the partnership of these two companies. NCC and Citycon are currently in the process of building an extension of 25000m² to the Iso Omena shopping center in Helsinki, Finland.