Hammerson exchanges contracts for sale of city center, Essen and completes sale of Luisencenter, Dar

Commenting on both transactions, John Richards, Chief Executive, Hammerson plc said: “The completion of these transactions will realise total proceeds of £90.6 million, which will reduce the group’s exposure in Germany to 5% of the portfolio on a pro forma basis. Hammerson continues to invest in the UK and France.'

City Center, Essen
Hammerson plc and Algemeen Burgerlijk Pensioenfonds (ABP) have exchanged contracts for the sale of the freehold of City Center, Essen, to CS Euroreal, a German real estate open-ended fund, for £80.4 million (€115.5 million). The net sales proceeds for Hammerson’s 22% interest in Essen Shopping Center B.V., the freeholder of City Center, are £17.6 million (€25.2 million). Hammerson has also exchanged contracts for the sale of PHV GmbH, its wholly owned subsidiary, which operates City Center’s car parks, for net proceeds of £1.9 million (€2.7 million).

It is anticipated that completion of the sale will take place by the end of 2003 and that the proceeds will be used to reduce the group’s borrowings. The book value of the group’s interests in City Center and the car parks, at 31 December 2002, was £22.1 million (€31.8 million). Hammerson’s share of the net rental income from the properties was £1.2 million (€1.7 million) in 2002.

Under the terms of the contract, CS Euroreal, on completion, will retain a maximum of £3.6 million (€5.1 million) of the total purchase price of which £0.8 million (€1.1 million) relates to Hammerson’s interest, which will be released when certain works are completed.

Hammerson was advised by Jones Lang LaSalle and CS Euroreal was advised by FPDSavills.

Luisencenter, Darmstadt
Hammerson has also completed the sale of Luisencenter, Darmstadt, to Difa, a German fund, the exchange of contracts for which was announced on 15 August 2003. The first payment, £66.4 million (€95.4 million), of the net sale proceeds of €102.2 million, has now been received. The balance of £4.7 million (€6.8 million) is expected following Hammerson’s completion of outstanding conditions. Hammerson has provided a rental guarantee in respect of the letting of vacant space amounting to a maximum of £0.4 million (€0.6 million) per annum for five years.

Source: Hammerson

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