Commenting on both transactions, John Richards, Chief Executive, Hammerson plc said: ââ¬ÅThe completion of these transactions will realise total proceeds of ã90.6 million, which will reduce the groupââ¬â¢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 ã80.4 million (ââ¬115.5 million). The net sales proceeds for Hammersonââ¬â¢s 22% interest in Essen Shopping Center B.V., the freeholder of City Center, are ã17.6 million (ââ¬25.2 million). Hammerson has also exchanged contracts for the sale of PHV GmbH, its wholly owned subsidiary, which operates City Centerââ¬â¢s car parks, for net proceeds of ã1.9 million (ââ¬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 groupââ¬â¢s borrowings. The book value of the groupââ¬â¢s interests in City Center and the car parks, at 31 December 2002, was ã22.1 million (ââ¬31.8 million). Hammersonââ¬â¢s share of the net rental income from the properties was ã1.2 million (ââ¬1.7 million) in 2002.
Under the terms of the contract, CS Euroreal, on completion, will retain a maximum of ã3.6 million (ââ¬5.1 million) of the total purchase price of which ã0.8 million (ââ¬1.1 million) relates to Hammersonââ¬â¢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, ã66.4 million (ââ¬95.4 million), of the net sale proceeds of ââ¬102.2 million, has now been received. The balance of ã4.7 million (ââ¬6.8 million) is expected following Hammersonââ¬â¢s completion of outstanding conditions. Hammerson has provided a rental guarantee in respect of the letting of vacant space amounting to a maximum of ã0.4 million (ââ¬0.6 million) per annum for five years.
Source: Hammerson