Hammerson has sold its majority stake in a major Paris shopping complex for £362 million as it pushes on with its turnaround scheme.
The shopping centre giant announced that it completed the sale of its 75% stake in the Italie Deux shopping destination in the French capital to AXA Investment Managers for €430 million (£362 million).
Hammerson said the sale price represented an 8.5% discount on the site’s book value from December 2018, and is “marginally below” its June 2019 valuation.
The retail property firm has sold a number of sites in recent months as it looks to ease the pressure currently facing shopping centres.
Hammerson has seen its share value slide by 21.7% over the past 12 months and swung to a £319.8 million loss in the half year to June 30, compared to a £55.7 million profit for the same period last year.
It added that the forward sale of a 75% stake of an extension of Italie Deux, for an additional €43 million (£36.3 million), has also been agreed.
The extension will add 68,889 sq ft of extra space to the Italie Deux site and is due to open in September 2020 and Hammerson said 41% of units have been pre-let.
The firm said the sale of the centre, which is located in the 13th arrondissement and welcomes 12 million visitors each year, will be “used to reduce debt and strengthen the balance sheet”.
The sale comes a month after Hammerson sold the St Oswald’s Retail Park in Gloucester to the local council for £54 million.
Hammerson owns or has significant interests in various shopping centres in the UK, France and Ireland. Its portfolio consists of Brent Cross in London, Cabot Circus in Bristol, Westquay in Southampton, Victoria Gate in Leeds and the Bullring in Birmingham.
RPA Perspective Planning approval has been secured by Hammerson, on behalf of the Dundrum Partnership, for 107 new apartments at Dundrum town centre in South County Dublin.
The building will mark Hammerson’s first move into residential development in Ireland and is part of its new City Quarters concept which creates mixed-use neighbourhoods surrounding existing destinations.
The project will incorporate one studio, 50 one-bedroom and 56 two-bedroom apartments which will be managed on a long-term rental basis.
On-site resident amenities will include a co-working space at ground floor level, a gym, cinema room, and lounge and terrace at the upper levels. There will also be exterior courtyards and terraces.
"Our City Quarters concept will see Hammerson transform our city venues beyond pure retail into successful neighbourhoods providing homes, workspaces, hotels and accessible public realm," said Hammerson Ireland director Simon Betty. "We welcome An Bord Pleanála’s positive decision on Dundrum.
"Our first City Quarters scheme in Ireland will create vibrant and sustainable residences adjacent to our flagship destination with easy access to a range of public transport services and large employment hubs. A high-quality design, based on best-practice in architectural sustainability, will set the benchmark for future developments in Dublin central, Dundrum and Swords."
It is intended that construction works for the proposed development will begin in 2020. Hammerson is leading the development on behalf of the Dundrum Retail Limited Partnership, a 50:50 Allianz and Hammerson joint venture that owns and operates Dundrum Town Centre.
