The Jumbo shopping center consists of an existing part (GLA approx. 56,000 m² completed in 1999) and an extension (GLA approx. 29,000 m²) to be opened on October 26, 2005. The latter will be delivered turn key and fully let to Rodamco Europe on the date of transfer. Through the acquisition Rodamco Europe will acquire around 29,500 m² GLA, which translates into a 54% share of the GLA excluding the two hypermarkets in the basement who are owner-occupiers. The Finnish pension fund Fennia owns the remainder 46% of the retail space.
Rodamco Europe will acquire the share in the shopping center by swapping the office buildings Marceau and Serbie in Paris and Pontis Haus in Münich and paying an additional cash sum of approx. € 55 million. Also included in the agreement is a preferential right signed between Rodamco Europe and IVG, giving IVG the opportunity to purchase the Rodamco Europe office building on Avenue Hoche in Paris after the current renovation is completed.
Says CEO Maarten Hulshoff: "Rodamco Europe is very pleased with the signed agreement to acquire the Jumbo Shopping center in Finland. It is a good opportunity to acquire an "A*" rated shopping center in a Euro zone market in exchange for the divestment of three office buildings in our portfolio. This is fully in line with Rodamco Europe's strategy to divest non-core assets such as offices and retail on less strategic locations in favor of high quality retail properties in key cities in Europe. The acquisition will provide us with a good platform for possible future investments in Finland, a country with a strong economy and a forecasted 2005 GDP growth of 3.3%[*]."
The Jumbo shopping center will be the 17th shopping center in the investment portfolio of Rodamco Europe in the Nordic countries and Rodamco Europe's 4th largest Nordic investment property behind Täby Centrum and Solna Centrum in Stockholm and Fisketorvet in Copenhagen. The shopping center is located in the 'Aviapolis' region north of Helsinki, Finland and has a strong tenant mix, consisting of two department stores, Stockmann and Anttila, and international anchors such as H&M, Zara and Stadium. The extended Jumbo shopping center is expected to welcome around 9 million visitors annually.
[*] Source: Eurostat
