09.03.2010

Finnish property developer Citycon embarks on major investment programme

A new shopping centre will be constructed in Helsinki, with existing shopping centres expanded and renovated in Espoo and Jyväskylä.

Citycon, the market leader in the Finnish shopping centre business, has launched a EUR 250 million property development programme. The programme includes a new shopping centre, a major expansion of two shopping centres and the major renovation of two more shopping centres.

The biggest project is the expansion of the Iso Omena shopping centre in Matinkylä by 20,000-30,000 square metres above a metro station that will be built adjacently. The City of Espoo has awarded the contract to Citycon and NCC. The project will be completed in 2015, according to Petri Olkinuora, CEO of Citycon.

The construction of a new shopping centre has already started in the Myllypuro district of Helsinki. The project will cost some EUR 60 million, of which Citycon’s share is about EUR 20 million. The new shopping centre will have about 7,300 square metres of retail space to rent and will also include 255 private apartments, which have been sold to Ilmarinen, Asuntosäätiö and the Icecapital fund.

Citycon is also investing EUR million in the renovation of the Forun shopping centre in Jyväskylä and EUR 19 million in the renovation of the Espoontori shopping centre. Citycon owns a total of 33 shopping centres and 50 other retail properties and also has a strong position in Sweden and a firm foothold in the Baltic countries.