Hammerson has exchanged contracts to sell the freehold for 54-60 rue du Faubourg Saint-Honoré in Paris' 8th arrondissement to Ramsbury AB for 165 million, slightly above its December 2011 book value.
Hammerson acquired the buildings in Paris' luxury retail quarter in 2005 and the retail element of the 8,000 m² mixed-use property has recently been redeveloped.
Following the refurbishment, the scheme comprises 3,900m² of retail space that is occupied by designer brands including Burberry, Moschino, Jenny Packham and Bally. A further 3,900m² of residential accommodation and 200 m² of office space completes the scheme. Net passing rent is 7.3 million taking account of stepped rents.
Hammerson was advised by CBRE, BNP Paribas Real Estate and Arsène Taxand and Ramsbury AB was advised by Cushman & Wakefield.
David Atkins, Chief Executive of Hammerson, commented: "This is a flagship location in Paris and utilizing our development and leasing expertise we have attracted prestigious retail brands for this landmark scheme. We have maximized our asset management opportunities and this disposal crystallizes a substantial profit on cost, further enhancing our financial flexibility to undertake refurbishment, development and acquisition opportunities within our retail portfolio.''