Hammerson plc has acquired SQY Ouest, a 31,000-m² shopping center in Saint Quentin-en-Yvelines, in a 50:50 joint venture with Codic France. The vendor is SNC Parc culturel urbain d'animation permanente, and the consideration is 38 million. Hammerson's initial commitment is 20 million, including transaction costs.
SQY Ouest benefits from good transport links and has over 45 retailers on four floors, including international brands such as Bershka, GoSport, Virgin Megastore and Zara. The top floor is anchored by one of UGC's most successful multiplex cinemas. SQY Ouest is currently 87% occupied, and the yield on purchase price is 9.2%, after taking account of vacancy charges and other direct costs.
To address certain configuration and leasing issues a restructuring of the center was initiated, but not completed, by the previous owner. As a consequence, there is an opportunity to reconfigure the existing center by introducing new anchor tenants, improving the catering offer, and creating additional retail space. Hammerson will manage the center.
Hammerson was advised on the transaction by Arsene Taxand and Gide Loyrette Nouel.
David Atkins, Chief Executive of Hammerson, said: "This is an exciting opportunity to generate strong returns for shareholders by repositioning and improving SQY Ouest. The center will benefit from the expertise of our French team, who will apply a coordinated management approach to both SQY Ouest and Espace Saint Quentin."