We advised Citycon on signing a binding agreement to divest Kristiine keskus in Tallinn, Estonia. The transaction is significant on Estonian market both for its value (being around 129 million euros) as well as for the reason that the center was acquired entirely with Estonian capital.
Focus on the Nordic real estate market
This divestment is in line with Citycon’s strategy to divest of non-core assets and focus on its core, Nordic urban portfolio. The deal is estimated to close by mid-December 2024 and is subject to the competition authority’s approval. The transaction is financed by a syndicate of SEB and Swedbank. “This divestment demonstrates the strength of our assets, and we are confident that we will exceed the divestment target of EUR 380 million set for year 2024,” says Erik Lennhammar, Citycon’s Chief Development & Investment Officer.
Broad-based ownership
The buyer of Kristiine Keskus is EfTEN ABC4, owned by Estonian investors. The new owners of the center include Ivar Vendelin, Anders Anderson, Taavet Hinrikus, Kristjan Rahu, Priit Koit, Toonart Rääsk, EfTEN Real Estate Fund 5, Tõnu Uustalu, and Viljar Arakas. EfTEN Real Estate Fund 5 is the largest investment of the publicly listed EfTEN United Property Fund, which means that nearly 6,000 Estonian retail investors will also become owners of the shopping center.
Renovated shopping centre
Kristiine Keskus has 45,300 square meters of leasable space across two floors. The center was opened in 1999 and underwent a renovation in 2019. It houses approximately 130 retail and service establishments, as well as dining venues. The anchor tenants of Kristiine Keskus include Prisma, H&M, Sportland, Reserved, New Yorker, Rademar, Apollo, O’Learys, and Jysk. In early 2023, a MyFitness gym covering nearly 2,000 square meters was opened in Kristiine Keskus.
Our services and project team
We advised the client throughout the entire transaction, including the preparation of transaction documents, assistance with organising the LDD process, and negotiations. Our team included partner Paul Künnap, counsel Triin Ploomipuu, and senior associate Andra Grünberg. Sorainen will continue to assist the client during the closing proceedings, subject to the approval of the Estonian Competition Authority.
