Hammerson plc has sold Néo, 14 boulevard Haussmann, Paris 9ème, to KanAm Grund Kapitalanlagegesellschaft mbH, a German fund, raising net cash proceeds of £179 million (269 million). The freehold 26,700 m² office property was completed in September 2003.
Neo Office Building, Paris.
The principal occupier of Néo, 14 boulevard Haussmann is La Société du Figaro, the leading French newspaper. Additional tenants include: the Embassy of the United States of America; CCF, a subsidiary of HSBC Holdings plc; De Fursac; and Société Hôtelière Lutetia Concorde. The property currently produces a passing rental income of £10.4 million (15.6 million) per annum.
The sales proceeds were 5% below the original cost of the building, but 19% above the valuation of the property at 31 December 2004.
John Richards, Chief Executive of Hammerson, said: "The occupational market in Paris proved to be considerably weaker than we envisaged when we started the development of Néo. However, the investment market in Paris for prime offices has remained buoyant enabling us to recycle the proceeds from this property. Hammerson has a substantial pipeline of future development opportunities, both in the retail and office sectors, and the proceeds will be invested in other projects offering good growth potential."
Hammerson was advised by Strategies and Corp.