(Reuters) – Nordic commercial property owner Citycon said on Tuesday it plans to raise about 400 million euros (US$550 million) of new capital from a Canadian pension fund and existing owners as it looks to step up shopping centre acquisitions.
About half of the issue is planned to be offered to CPP Investment Board European Holdings, a wholly owned subsidiary of Canada Pension Plan Investment Board (CPPIB), while the other half is directed to existing shareholders, Citycon said.
Citycon said in a statement it would use part of the proceeds to make a debt repayment to deleverage its balance sheet and enable it to pursue acquisitions and development projects in the Nordic and Baltic regions.
Following the issue, CPPIB would own about 15 percent of Citycon’s shares and votes, while the top owner, Israel’s Gazit-Globe, would have 42 percent and Finnish pension fund Ilmarinen about 8 percent.
The price of the issue, 2.65 euros per share, is 2 percent lower than the stock’s closing price on Monday.
Citycon holds 36 shopping centres and 33 other retail properties. In a 2012 acquisition it teamed up with CPPIB to buy a shopping centre in Sweden for 530 million euros.
(Reporting By Jussi Rosendahl, editing by Terje Solsvik)
(This story has been edited by Kirk Falconer, Editor, peHUB Canada)
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