Hammerson plc has exchanged contracts for the sale of its ownership in Saint Sébastien shopping centre, Nancy, to AEW Ciloger on behalf of SCPI Laffite Pierre and Actipierre Europe for a net vendor price of €162m (£143m), moderately below 30 June 2017 book value.
Well located in the centre of Nancy, north-east France, Saint Sébastien totals 24,000 m2 GLA, comprises 105 retailers and is 95% let. Key anchors include Monoprix, Intersport, C&A and Sephora. Hammerson’s ownership represents 75% of GLA.
Hammerson acquired its stake in Saint Sébastien in 2014 for €130m (£109m). Since then the centre has benefited from being actively repositioned through a renovation project in 2016, the creation of a number of new retail units, and leasing to lift the quality of the tenant mix. These activities incurred a total capital expenditure of around €12m. The asset generates an annual passing rent of €8m (£7m).
Completion is expected to occur before year-end and is subject to the usual conditions precedent.
David Atkins, CEO Hammerson, commented: “We have successfully repositioned Saint Sébastien and improved the tenant mix through effective asset management and investment, enabling us to recognise a valuation uplift since acquisition. I am also pleased to report that following this sale, we have exceeded our 2017 target of €453.4m (£400m) disposals as part of our capital recycling strategy.”