Hammerson confirms that it has agreed to exercise the option to sell a further 24% interest in O'Parinor shopping center, Aulnay-sous-Bois, near Paris to a client of Rockspring Property Investment Managers LLP. The sale was envisaged following the original disposal last year of a 51% stake in the property.
As stated in the original announcement of August 19, 2010, this sale was based on the valuation at that time and Hammerson's net proceeds from the sale are 106 million. The sale takes Rockspring's client's stake in the center to 75%.
In addition, the recently signed non-recourse credit facility for O'Parinor was drawn, raising an additional 54 million, taking Hammerson's net receipts to 160 million.
The center, held in co-ownership with Carrefour and Redevco, was originally acquired by Hammerson in 2002. The company completed a 24,000-m² extension and development in 2008, taking the total size of the center to 90,000 m².
Principal occupiers include Fnac, Go Sport and Darty with the extension accommodating international brands including Toys R Us, Boulanger and Guess. Hammerson has retained the asset management role for the joint venture, and there are a number of specific plans in place to improve footfall and sales within the center, including the renovation of the original mall.
The disposal is in line with Hammerson's strategy to realize value, and release capital for investment opportunities in the UK and France which offer superior returns.
David Atkins, Chief Executive of Hammerson, said: "I'm pleased to have completed the sale of the second stake in O'Parinor as expected, which, combined with the announced credit facility, brings further liquidity into our business. However, we retain a significant interest in the center, and are progressing with plans to refresh its offer to tenants and consumers."
Robert Gilchrist, Chief Executive of Rockspring, said: "We are pleased to conclude the planned second phase of our client's acquisition of this key super-regional shopping center. The various initiatives and plans that we have developed with Hammerson since the initial purchase last year provide an exciting foundation for further enhancing the tenant mix and the attraction of the center to shoppers."