Hammerson has exchanged contracts for the sale of its share (64.5%) of Place des Halles shopping centre in Strasbourg, France. LaSalle Investment Management will purchase the centre from Hammerson and its co-owner, on behalf of funds under management, for a total net vendor price (100%) of €291m (£258m), slightly above 30 June 2017 book value.
Centrally located in Strasbourg, Place des Halles is a prime regional shopping centre totalling 41,600m2 and comprising 120 stores and restaurants. The centre benefits from strong transport links and attracts 10 million shoppers per year. The asset generates an annual headline rent of €14.3m (£12.7m).
Hammerson has undertaken several recent asset management initiatives to improve the quality of the centre, including a full mall refurbishment and the creation of new MSU units including the largest Zara flagship store in the East of France. Remodelling of the exterior façade began in 2017.
Completion of the sale is expected to occur before year-end, is subject to the usual conditions precedent, and a small portion of the proceeds are subject to a guarantee on routine leasing discussions ongoing at the point of transaction.
David Atkins, CEO Hammerson, commented: "This disposal is in line with our focus on strategic assets in France with value creation potential. We remain committed to reducing leverage ahead of progressing with our development pipeline and we remain confident of achieving our capital recycling strategy this year."
