17th Nov 2005 07:01
Hammerson PLC17 November 2005 Hammerson Acquires Interest in Queensgate Shopping Centre, Peterborough Hammerson plc has acquired a 50% interest in the freehold of Queensgate ShoppingCentre in Peterborough from Norwich Union Life & Pensions for a totalconsideration of £156 million. Constructed in 1982, Queensgate Centre is a fully enclosed two level shoppingcentre providing approximately 75,000 m(2) (807,000 ft(2)) of retailaccommodation anchored by John Lewis, Waitrose, Marks & Spencer and Bhs. Thecentre provides a further 127 shop units and 2,300 car parking spaces. Theproperty generates a total net rental income of approximately £16.6 million perannum and is 15% reversionary. Hammerson and Norwich Union now own the centre through a 50:50 joint venture.The parties have worked together over the last three years in partnership withthe City Council and plan to carry out a major expansion of the centre byredeveloping the adjacent site at North Westgate, a planning application forwhich will be made during 2006. Part of the land to be redeveloped is also ownedby the joint venture. Hammerson will be the asset and development manager forthe joint venture. The existing centre will also be subject to a majorrefurbishment. The extension will provide additional accommodation of approximately 60,000 m(2)(646,000 ft(2)), including a new shopping street leading from the existingQueensgate Centre to a new anchor store. The scheme will also incorporaterestaurant and catering accommodation around a new city square, together withresidential accommodation and an additional 900 car parking spaces. Followingcompletion of North Westgate, the Queensgate Centre will total approximately135,000 m(2) (1,450,000 ft(2)), with 3,200 car parking spaces, making it one ofthe largest retail centres in the UK. John Richards, Chief Executive of Hammerson plc, said: " This acquisition reflects Hammerson's strategy of investing in dominantshopping centres in strong retailing locations. We see scope to improve thisprime asset through a combination of pro-active management and the developmentof additional retailing accommodation to address the needs of retailers seekingrepresentation in the City. Peterborough's population is growing at one of thehighest rates in the UK, making it an extremely attractive city in which toinvest." Ian Womack, Managing Director Property of Morley Fund Management, which acts asAsset Manager on behalf of Norwich Union, said: " Morley Fund Management has been working closely with Hammerson on the futuredevelopment of Queensgate for the last three years. This partnership combinesMorley's fund management leading edge expertise with Hammerson's pre-eminenttrack record in property development and, we believe, will unlock significantvalue for our clients." Councillor Ben Franklin, Leader of Peterborough City Council, said: " The City Council has been working with Hammerson and Morley on this scheme forsome time and will continue to do so. We have been impressed with the commitmentof Hammerson and Morley in developing their North Westgate plans with us overthe last three years. We see Hammerson's investment in the City as a significantstep forward in achieving a key element of the City's masterplan and aredelighted that Hammerson has joined Morley in this joint venture given itsunrivalled track record of regenerating city centres." For further information: John Richards, Chief Executive, Hammerson plc Tel: 020 7887 1000 Chris Smith, Director of Corporate Affairs, Hammerson plc Tel: 020 7887 1019 [email protected] Notes to Editor 1. The North Westgate scheme is one of ten key developmentsidentified by Peterborough City Council's city centre framework, which isanticipated to attract over £750 million of investment over the next 20 years. 2. Total development costs for the scheme are estimated atcirca £350 million. It is anticipated that a planning application will besubmitted for the scheme during 2006 and that a start on site could be made in2008/09 with practical completion three years later. 3. Hammerson plc is a leading European real estate investmentand development company. Established over 50 years ago, the group has operationsin the UK, France and Germany. Its high quality portfolio provides over1,300,000 m(2) of retail space and nearly 280,000 m(2) of prime offices and isvalued at over £4.8 billion. 4. Hammerson has a track record of carrying out successfulmajor regeneration and development schemes. The group's recent projects haveincluded The Bullring in Birmingham. Hammerson is also carrying out theredevelopment of the Merchants Quarter, Bristol through the Bristol Alliance. 5. Further information on Hammerson is available atwww.hammerson.co.uk. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Hammerson