27th Jun 2007 07:01
Hammerson PLC27 June 2007 SALE OF 9 PLACE VENDOME, PARIS 1ER---------------------------------- Hammerson and AXA REIM France have signed a conditional agreement to sell theirshares in SAS 9 place Vendome, the joint venture company which developed andowns the major office building at 9 place Vendome, Paris 1er. Completion of thesale is scheduled for 9 July 2007 and the purchaser, SAS Sloane place Vendome,has paid a non-refundable deposit of £13 million (€20 million). The purchaser will pay £226 million (€335 million) for the shares. Thisrepresents a net underlying property price of £415 million (€616 million) lessdeductions for shareholder loans and other net liabilities in the company.Taking into account acquisition fees, the net yield to the purchaser is below3.5%. Hammerson will record net proceeds of £207 million (€307 million) on thedisposal of its 50% interest in the underlying property to give a surplus of £35million (€53 million) over its 31 December 2006 value. On Hammerson'sdevelopment cost of £90 million (€133 million) its surplus is £117 million (€174million) or 130%. This is Hammerson's only French property which is outside the SIIC tax exemptregime. Hammerson will provide for £18 million (€26 million) of French capitalgains tax on the sale of shares and release deferred tax of £29 million (€43million). Hammerson has been the development manager to the 50:50 joint venture, which wasformed in 1999. The scheme was completed in May 2006 and provides 22,200 m(2) ofprime office accommodation, occupied principally by Clifford Chance, and 5,500 m(2) of retail space. Total rental income from the building on completion oflettings and the expiry of rent-free periods is projected to be £15 million (€23million) per annum. The proceeds of the sale will be reinvested in Hammerson's development programmeand further acquisitions in France. John Richards, Chief Executive said: "Hammerson is delighted to have had the opportunity to work with AXA REIM Franceon this highly profitable scheme. The success of the development of 9 place Vendome demonstrates Hammerson'sdevelopment skills: this was a complex project, carried out on a sensitive sitein a prestigious location. This disposal is in line with Hammerson's policy of recycling capital fromassets where we have added substantial value into new opportunities. We expectto make an announcement on further investment in France in the near future." Enquiries:--------- John Richards, Chief Executive Tel: 020 7887 1000Gerard Devaux, Managing Director, Continental Europe Tel: 00 33 1 5669 3000Christopher Smith, Director of Corporate Affairs Tel: 020 7887 1019 [email protected] 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 realestate portfolio provides around 1,200,000m(2) of retail space and 270,000m(2)of prime offices and is valued at nearly £7 billion. In recent years the grouphas carried out a number of high profile office developments in the City ofLondon and central Paris. It currently has a development programme of nearly £1billion and a longer-term development pipeline of some £5 billion. For moreinformation, visit www.hammerson.com. AXA REIM-------- AXA REIM, a wholly owned subsidiary of AXA IM Group, is a specialist in realestate fund management with around €42 billion* of assets under management. AXAREIM has an extensive pan-European real estate infrastructure, with over 460staff based in 12 offices and operating in 17 countries. As such, it is one ofEurope's largest and most diversified real estate investment managementbusinesses providing extensive multi-disciplinary expertise across a broadvariety of property types. Furthermore, AXA REIM expanded its geographicalcapabilities into Asia during 2006 by opening an office in Tokyo and alsoestablishing a presence in Singapore, and into Scandinavia early 2007 opening anoffice in Stockholm. Visit *Source AXA REIM as at 31 March 2007. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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