Hammerson has exchanged contracts for the sale of Märkisches Zentrum, a 54,700 m² shopping center in Berlin, to Dubai Investment Group for €88 million. The property generated a net rental income of €4.0 million in 2005.
Hammerson now owns one property in Germany, the 28,900 m² Forum Steglitz shopping gallery in south west Berlin. This asset is currently undergoing a major refurbishment programme and it is anticipated that the property will subsequently be marketed for sale.
Commenting on the transaction, John Richards, Chief Executive, said:
Hammersons strategic focus is on increasing its exposure to the UK and French markets where it has critical mass and established teams.
It has been our intention to dispose of our German property assets. In this connection, we closed our office in Germany at the beginning of 2004 and outsourced the management of our three remaining assets in Berlin.
The sale proceeds will be reinvested in our development programme, which includes major retail schemes in Bristol and Leicester, and an expansion programme at Parinor, the second largest shopping center in the Ile-de-France region of France.