(Sharecast News) - Hammerson announced on Thursday that, following the clearing of the City of Paris pre-emption right, it has completed the sale of its 75% stake in Parisian shopping destination 'Italie Deux' to AXA Investment Managers Real Assets for €430m (£362m).
The FTSE 250 company had announced in July that the forward sale of 75% of the Italik extension for an additional €43m was expected to complete in early 2022, 18 months after the opening of the development.
It said the transaction represented a net initial yield of 4.1% on Italie Deux.
The total sale price reflected an 8.5% discount to December 2018 book value, and was marginally below end of June book value.
"Italie Deux is located on the left bank of Paris and provides a unique mix of retail, leisure and cultural space," Hammerson said in its statement.
"Welcoming over 12 million visitors a year, leading brands within the flagship destination include Printemps, Fnac, Zara, Sephora and Carrefour.
"A 1,000-seat theatre, Le 13ème Art, opened in the centre in September 2017, offering a new cultural scene in Paris."
It also said a partnership had recently been signed with one of the main theatres in Paris, le Théâtre de la Ville.
Hammerson said the proceeds would be used to reduce debt and strengthen its balance sheet.
At 1009 GMT, shares in Hammerson were down 0.48% at 292.4p.
Hammerson (HMSO)18 Apr 2024 14:12