8th Mar 2007 17:14
Hammerson PLC08 March 2007 Hammerson: Acquisition of Retail Park Hammerson plc has acquired the freehold of Ravenhead Retail Park, St Helens for£120.6 million including costs. The property has a current annual net rentalincome of £4.8 million. Ravenhead Retail Park comprises 27,600m(2) of retail accommodation with partialopen A1 planning consent together with adjacent land with planning consent foran additional 8,100m(2) of retail space. The scheme has 17 units, with tenantsincluding Arcadia, B&Q, Boots, Currys and Next. The retail park is locatedwithin walking distance of St Helens town centre, three miles north of junctionseven of the M62, and approximately 12 miles from Liverpool. The transaction has been effected by Hammerson acquiring the entire issued sharecapital of a group of private companies ultimately controlled by Mr CJ Baybuttand Mr DJ Baybutt (the "Vendors"). Hammerson will issue 5,019,875 New OrdinaryShares to the Vendors as consideration, which represents 1.8% of Hammerson'scurrent issued share capital. Based on a share price of £15.76, the shares tobe issued will have a value of £79.1 million. Hammerson will also assumeapproximately £36.6 million of debt and other net liabilities in the acquiredcompanies. The New Ordinary Shares will be credited as fully paid and will rank pari passuin all respects with the existing ordinary shares of 25p each in the capital ofHammerson. A condition of the acquisition is that the New Ordinary Shares beadmitted to the Official List maintained by the United Kingdom Listing Authorityand be admitted to trading by the London Stock Exchange. Accordingly, suchapplications have been made. It is expected that the listing and admission ofthe New Ordinary Shares in London will become effective on 9 March 2007. Anapplication is also being made for the New Ordinary Shares to be admitted totrading by Euronext Paris. The acquisition terms include the potential for a further consideration of amaximum of £1.4 million which will be payable to the Vendors shouldthe Vendors exercise a put option, or Hammerson exercise a call option, overadditional freehold land adjacent to Ravenhead Retail Park. The additional consideration would be satisfied by a further issue of NewOrdinary Shares to the Vendors, credited as fully paid, which would rank paripassu in all respects with the existing ordinary shares of 25p each in thecapital of Hammerson. However, should law, regulation or the corporategovernance policy from time to time of Hammerson prohibit or prevent it fromissuing such New Ordinary Shares or should admission of them to the OfficialList or the London Stock Exchange not be obtained, Hammerson would satisfy thedeferred consideration in cash. John Richards, Chief Executive of Hammerson, commented: " This transaction demonstrates the benefits of Hammerson's REIT status in beingable to acquire attractive assets from owners of properties who have significantcapital gains tax liabilities. "Hammerson has built up a highly successful retail parks business over the pastfive years and this park offers significant opportunities to add value throughan extension and by active asset management." Enquiries: John Richards, Chief Executive Tel: 020 7887 1000Chris Smith, Director of Corporate Affairs [email protected] Tel: 020 7887 1019 Notes to Editors The most recent financial statements of Ravenhead Developments Limited wereprepared to 31 December 2005. These were abbreviated accounts prepared inaccordance with sections 246(5) and (6) Companies Act 1985 which show net assetsof £57,160,854. Subsequent to 31 December 2005, Ravenhead Developments Limitedhas acquired part of the Ravenhead Retail Park site from entities controlled bythe Vendors at a value of £12.2 million. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Hammerson