Hammerson has sold the Luisencenter shopping centre in Darmstadt, Germany to open-ended fund Difa, for ã71.98 million.
The German fund will pay Hammerson ã67 million on the handover of the property in November with the remaining ã4.79 million on the meeting of certain conditions. One of these is a a rental guarantee for vacant space amounting to a maximum of ã422,529 a year for five years.
The book value of the property at the end of December 2002 was ã82 million while the rental income is around ã4.15 million a year. Hammerson bought the leasehold interest in the mall units of the shopping centre in 1998, and subsequently acquired the freehold. This was followed up with a major improvement programme which was completed in 2002.
John Richards, chief executive of Hammerson said: 'This transaction is in line with our stated strategy of reducing our exposure to the German retail sector.' He added: 'Following completion, the portfolio in Germany will represent less than 6% of Hammersonôs total portfolio. The group is continuing to invest in attractive opportunities in the UK and France.'
Hammerson was advised by Jones Lang LaSalle.
