10th Jul 2007 07:00
Hammerson PLC10 July 2007 FRANCE: RETAIL PARK DEVELOPMENT ACQUISITIONS-------------------------------------------- Hammerson plc has entered into agreements to acquire two retail parkdevelopments in France, representing a potential total investment ofapproximately €50million. It has exchanged contracts to acquire the freehold of a proposed development, StOmer Retail Park, for €29.5 million. The project will be developed by currentowner SCCV des Frais Fonds, a 50:50 joint venture between CFA Nord (part of theFinanciere Duval group) and local development company PALM Promotions. Hammersonwill pay 30% of the purchase price upon start on site in January 2008.Subsequent payments will be made dependent on CFA / PALM achieving agreeddevelopment milestones. The site is located 2km south of St Omer, between Calaisand Lille, with direct access from the ring road. An adjacent site accommodatesa complementary, strong retail offer including a large Auchan hypermarket and a40-unit shopping gallery. CFA / PALM has obtained a CDEC(1), and is awaiting full planning consent for24,000 m(2) of retail units, of which Hammerson's ownership upon completion willbe 19,340 m(2). Around 89% of the scheme is pre-let, with principal tenantsincluding Boulanger, Gifi, Intersport and Tati. The estimated net rental incomeupon completion in mid-2009 is €1.75 million per annum, representing a netinitial yield of 5.9%. Hammerson has also signed heads of terms to acquire the development site of CapMalo Retail Park, near Rennes, through the acquisition of the entire issuedshare capital of GVA Collyer Coxhead Cap Malo, a subsidiary of GVA CollyerCoxhead Holdings. Hammerson will pay €10.3 million for the five-hectaresite, which has a CDEC for 10,700 m(2) of clothing, homewares and leisure retailpark accommodation. A planning application has been submitted and the result isexpected shortly. Additional total development costs are estimated at €10.6million, with work on site expected to start in April 2008 for completion inApril 2009. The forecast net initial yield on completion is 6.2%. The acquisitions will be financed from existing committed bank facilities. John Richards, Chief Executive of Hammerson, said: "Hammerson's strategy is to expand its business in France. These twoacquisitions provide attractive development opportunities and significantlyincrease the scale of the group's activities in the French retail park sector,following the acquisition of Villebon 2 in 2005. These transactions followHammerson's recent sale of its 50% interest in 9 Place Vendome in Paris, whichrealised a total development surplus of £117million (€174 million) or 130% oncost." Enquiries:---------- John Richards, Chief Executive Tel: 020 7887 1000 Christopher Smith, Director of Corporate Affairs Tel: 020 7887 1019 christopher.smith@hammerson.com Gerard Devaux Tel: 0033156693000 g.devaux@hammerson.fr Notes to Editors:---------------- Hammerson plc Hammerson plc is a leading European REIT (LSE: HMSO). Established over 50 yearsago, the group has operations in the UK and France. Its high quality real estateportfolio provides approximately 1,300,000 m(2) of retail space and 275,000 m(2)of prime offices and is valued at nearly £7 billion. It has a developmentprogramme of around £6 billion. For more information, visit www.hammerson.com. -------------------------- (1) CDEC: Commission Departementale d'Equipement Commerciale, or planningapproval which determines the amount of commercial activity allowed on a site. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Hammerson