Hammerson plc has signed a joint venture agreement with leading French insurance and financial services group AXA to redevelop adjoining properties at 9 place VendÃÂ´me and 368/374 rue Saint HonorÃÂ©, Paris 1e.
The joint venture company, 9 place VendÃÂ´me SCI, which is owned 50:50 by the two partners, has purchased the existing buildings from AXA for ÃÂ£78 million (Ã¢âÂ¬120 million). Over the past two years, Hammerson, the development manager for the project, has obtained all administrative authorisations and design approvals.
The scheme will involve the creation of 26,000 mÃÂ² of prime offices behind the listed faÃÂ§ade on place VendÃÂ´me and 3,000 mÃÂ² of modern retail space in four medium sized units fronting rue Saint HonorÃÂ©.
It is anticipated that the two year construction period will start in the final quarter of 2003, subject to market conditions. HammersonÃ¢â¬â¢s share of the total costs of the development, including site acquisition and financing charges, is estimated at approximately ÃÂ£83 million.
GÃÂ©rard Devaux, Managing Director Continental Europe, said:
Ã¢â¬ÅThis is one of the best locations in central Paris for both offices and shopping. We are delighted with this joint venture with AXA, which I believe demonstrates HammersonÃ¢â¬â¢s strong reputation in the French market.Ã¢â¬Â