A European subsidiary of the Canada Pension Plan Investment Board (CPPIB) has agreed to purchase a 15% stake in Citycon, an owner and developer of shopping centres in the Nordic and the Baltic countries.
Helsinki-based Citycon is raising approximately €400 million ($598 million) of new capital, of which approximately €200 million ($299 million) will be raised through a directed share issue to CPPIB European Holdings.
“This investment enables us to expand our retail platform in the Nordic region, which continues to be an attractive retail market,” says Graeme Eadie, senior vice-president, real estate investments, with the CPPIB.
This is the second transaction between the CPPIB and Citycon, which first joined forces in December 2012 to acquire Kista Galleria, one of the largest shopping centres in the Stockholm area.
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