Hammerson sells German Shopping Centre for £71.98 million

Hammerson has sold the Luisencenter shopping centre in Darmstadt, Germany to open-ended fund Difa, for £71.98 million.

The German fund will pay Hammerson £67 million on the handover of the property in November with the remaining £4.79 million on the meeting of certain conditions. One of these is a a rental guarantee for vacant space amounting to a maximum of £422,529 a year for five years.

The book value of the property at the end of December 2002 was £82 million while the rental income is around £4.15 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 Hammerson´s total portfolio. The group is continuing to invest in attractive opportunities in the UK and France.'

Hammerson was advised by Jones Lang LaSalle.

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