Skip to main content

The Globe and Mail

Swedish mall deal marks CPPIB's first Nordic real estate move

Stockholm

Neil Beer/©PHOTODISC

Canada Pension Plan Investment Board has struck a deal for its first real estate investment in the Nordic region.

CPPIB is teaming up with Citycon Oyj to jointly acquire Kista Galleria Shopping Centre in Stockholm, Sweden.

The transaction is based on a property value of about $691-million.

Story continues below advertisement

Kista is to be owned by a joint venture company that is controlled 50/50 by CPPIB and Citycon.

CPPIB's equity investment will be about $177-million.

"This is our first real estate investment in the Nordic region and we are excited to acquire a stake in Kista Galleria, a prime shopping centre in Stockholm," CPPIB senior vice-president of real estate investments Graeme Eadie said in a news release Wednesday.

CPIBB intends to seek out other investment opportunities in the region with Citycon as it expands its retail portfolio in Europe, Mr. Eadie added.

Finland-based Citycon is a major owner, developer and operator of shopping centres and commercial properties in the Nordic and Baltic countries.

Kista Galleria has 185 shops and restaurants and leisure activities such as bowling, indoor go-karting and cinema.

CPPIB's real estate portfolio was valued at $18-billion at Sept. 30, 2012.

Story continues below advertisement

It has stakes in shopping centres in Canada, Australia, Brazil, China, Germany, Turkey, the United Kingdom and United States.

The Kista transaction is slated to close in January 2013.

Report an error Licensing Options
About the Author
Quebec Business Correspondent

Bertrand has been covering Quebec business and finance since 2000. Before joining The Globe and Mail in 2000, he was the Toronto-based national business correspondent for Southam News. He has a B.A. from McGill University and a Bachelor of Applied Arts from Ryerson. More

Comments

The Globe invites you to share your views. Please stay on topic and be respectful to everyone. For more information on our commenting policies and how our community-based moderation works, please read our Community Guidelines and our Terms and Conditions.

We’ve made some technical updates to our commenting software. If you are experiencing any issues posting comments, simply log out and log back in.

Discussion loading… ✨

Combined Shape Created with Sketch.

Combined Shape Created with Sketch.

Thank you!

You are now subscribed to the newsletter at

You can unsubscribe from this newsletter or Globe promotions at any time by clicking the link at the bottom of the newsletter, or by emailing us at privacy@globeandmail.com.