13th May 2009 07:00
Sale of Forum Steglitz, Berlin
Hammerson has exchanged contracts for the sale of its remaining property in Germany, Forum Steglitz, to Europa Fund III, a pan-European investment fund launched by Europa Capital LLP. Hammerson will receive gross proceeds of €70 million (£62.7 million3) from the sale, representing a net initial yield of 8%. Transaction costs are expected to be in the order of €1 million.
Hammerson acquired Forum Steglitz, a 32,000 m² shopping centre in Berlin's Schloßstraße, in 2000, and carried out a refurbishment in 2006. The centre was valued at €93.1 million at 31 December 2008. Net rental income in 2008 was €3.8 million. The sale will reduce administration costs by approximately €0.6 million p.a.
John Richards, Chief Executive of Hammerson said:
"Forum Steglitz was Hammerson's only remaining asset in Germany. The proceeds of the sale will be used to reduce Group borrowings."
Further information
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John Richards, Chief Executive |
Tel: +44 (0) 20 7887 1000 |
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Morgan Bone, Director of Corporate Communications |
Tel: +44 (0) 20 7887 1009 |
Notes:
1) Hammerson plc is a FTSE-100 Real Estate Investment Trust which operates principally in the retail sector in the UK and France. Its £6.5 billion portfolio, which provides 1.4 million m² of retail space and 255,000 m² of offices, includes 15 major shopping centres and 19 retail parks.
2) Europa Capital is an independent real estate fund management group operating from offices across Europe. Since 1995, Europa Capital's principals have collectively raised six real estate funds and are committed to over 60 transactions totalling in excess of €5.0 billion across 17 European countries.
3) The exchange rate used is €1.117:£1, the rate on 12 May 2009.
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