Hammerson has sold the Luisencenter shopping centre in Darmstadt, Germany to open-ended fund Difa, for ÃÂ£71.98 million.
The German fund will pay Hammerson ÃÂ£67 million on the handover of the property in November with the remaining ÃÂ£4.79 million on the meeting of certain conditions. One of these is a a rental guarantee for vacant space amounting to a maximum of ÃÂ£422,529 a year for five years.
The book value of the property at the end of December 2002 was ÃÂ£82 million while the rental income is around ÃÂ£4.15 million a year. Hammerson bought the leasehold interest in the mall units of the shopping centre in 1998, and subsequently acquired the freehold. This was followed up with a major improvement programme which was completed in 2002.
John Richards, chief executive of Hammerson said: 'This transaction is in line with our stated strategy of reducing our exposure to the German retail sector.' He added: 'Following completion, the portfolio in Germany will represent less than 6% of HammersonÃÂ´s total portfolio. The group is continuing to invest in attractive opportunities in the UK and France.'
Hammerson was advised by Jones Lang LaSalle.