17th Jul 2007 07:00
Hammerson PLC17 July 2007 Sale of 50% Interest in WestQuay Shopping Centre, Southampton for £299 million Hammerson plc has sold a 50% interest in WestQuay Shopping Centre, Southamptonto an affiliate of GIC Real Estate, the real estate investment arm of theGovernment of Singapore Investment Corporation, for a cash consideration of £299million after disposal costs. Hammerson and GIC Real Estate will each hold their respective 50% interests inWestQuay in a joint venture partnership, with Hammerson retained as assetmanager. WestQuay had a book value of £588 million at 31 December 2006 and generates anet rental income of approximately £25 million per annum. Hammerson will use theproceeds to finance its development programme. Opened in 2000, WestQuay was developed in a 50:50 joint venture betweenHammerson and Barclays, with Hammerson acquiring the latter's 50% interest inDecember 2004. The scheme provides 76,200 m(2) of high quality retailaccommodation anchored by John Lewis and Marks & Spencer. John Richards, Chief Executive of Hammerson, said: "This sale demonstrates the continuing demand for prime retail assets and is inline with our strategy of recycling capital. We look forward to working with GICReal Estate to further strengthen the dominant trading position WestQuayoccupies in its prosperous catchment. WestQuay was Hammerson's single largestinvestment asset." Dr Seek Ngee Huat, President of GIC Real Estate, said: "This joint venture represents an excellent opportunity to acquire a premiershopping destination in the heart of Southampton. We look forward to partneringHammerson, a leading European real estate company, on this investment." Hammerson was advised by CBRE and GIC Real Estate was advised by Strutt &Parker. Enquiries: John Richards, Chief Executive, Hammerson plc Tel: 020 7887 1000 Chris Smith, Director of Corporate Affairs, Hammerson plc Tel: 020 7887 1019 [email protected] Mah Lay Choon, Vice President, Corporate Communications Tel: (65) 6889 6841Administration and Corporate Affairs, GIC Real Estate [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 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. GIC Real Estate Pte Ltd (GIC Real Estate) GIC Real Estate is the real estate investment arm of the Government of SingaporeInvestment Corporation. GIC Real Estate manages a multi-billion dollar portfolioof direct and indirect property investments with over 200 investments in morethan 30 countries. It is one of the largest institutional investors in Asia andcurrently ranks amongst the world's top 10 global real estate investment firms. For more information on GIC Real Estate, please refer to www.gicre.com. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Hammerson