27th Jun 2005 08:00
Hammerson PLC27 June 2005 For immediate release - Monday, 27 June 2005 Hammerson - Sale of Neo, 14 boulevard Haussmann, Paris 9eme for £179 million Hammerson plc has sold Neo, 14 boulevard Haussmann, Paris 9eme, to KanAm GrundKapitalanlagegesellschaft mbH, a German fund, raising net cash proceeds of £179million (€269 million). The freehold 26,700 m(2) office property was completedin September 2003. The principal occupier of Neo, 14 boulevard Haussmann is La Societe du Figaro,the leading French newspaper. Additional tenants include: the Embassy of theUnited States of America; CCF, a subsidiary of HSBC Holdings plc; De Fursac; andSociete Hoteliere Lutetia Concorde. The property currently produces a passingrental income of £10.4 million (€15.6 million) per annum. The sales proceeds were 5% below the original cost of the building, but 19%above the valuation of the property at 31 December 2004. John Richards, Chief Executive of Hammerson, said: "The occupational market in Paris proved to be considerably weaker than weenvisaged when we started the development of Neo. However, the investment marketin Paris for prime offices has remained buoyant enabling us to recycle theproceeds from this property. Hammerson has a substantial pipeline of futuredevelopment opportunities, both in the retail and office sectors, and theproceeds will be invested in other projects offering good growth potential." Hammerson was advised by Strategies and Corp. For further information: John Richards, Chief Executive Tel: 00 44 20 7887 1000 Gerard Devaux, Managing Director, Continental Europe Tel: 00 33 1 56 69 3000 Chris Smith, Director of Corporate Affairs Tel: 00 44 20 7887 1019 [email protected] This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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