12th Dec 2019 08:48
(Alliance News) - Hammerson PLC on Thursday said it has completed the EUR430 million sale of its stake in a large Paris shopping complex to an AXA Investment Managers SA unit.
The shopping centre owner, which announced an agreement to sell its 75% stake in the unit in July, said the funds from the Italie Deux disposal will go towards reducing debt.
The forward sale of a 75% stake of an extension of the site, for an additional EUR43 million, has also been agreed. The Italik extension will add 6,400 square metres of extra space in Italie Deux.
Hammerson in July said the extension is due to open in September 2020, and is already 41% pre-let.
The sale price of the property, which houses retailers like Inditex SA's Zara and major French grocer Carrefour SA, was marginally below its June book value and also an 8.5% discount to the June 2018 valuation. It does however reflect a 4.1% net initial yield on the property.
The site welcomes 12 million visitors per year, Hammerson said.
Hammerson said: "The proceeds will be used to reduce debt and strengthen the balance sheet."
Shares in Hammerson were 0.2% higher at 294.30 pence each in London on Thursday morning. It is also listed in Johannesburg, where its stock was trading 0.3% higher at ZAR57.02 apiece.
By Eric Cunha; [email protected]
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