Hammerson has exchanged contracts to sell its 50% interest in 4, place de lOpéra, Paris 2ème, through the disposal of its shares in the venture, to its partner FOSCA, an investment fund managed by OFI REIM and F&C. The total consideration is €39.7 million (£27.1 million), slightly below book value.
FOSCA, which was initially set up by MAAF Assurances, now owns 100% of the shares in the entity which holds 4, place de lOpéra. The 50/50 joint venture between Hammerson and FOSCA was set up in April 2001 to carry out a development of the site. Hammerson, as development manager, created plans for a 10,300 m² mixed-use, office-led development, known as Opéra Capucines.
Commenting on the transaction, John Richards, Chief Executive, said: "Hammerson has added significant value to this project in the pre-development phase. The Company is pleased to have agreed a sale of its interest in the development to its joint venture partner, FOSCA."