Hammerson is to sell a Paris retail development to German open-ended fund manager DEKA for £98m.
The UK’s fourth largest quoted firm has exchanged contracts to sell 54 boulevard Haussmann, Paris 9eme to DEKA for FF1,080m (£98 million). Completion of the deal is expected early in 2002.
Hammerson acquired 54 boulevard Haussmann in November 1994 and carried out a major redevelopment of the freehold building, creating 12,800 sq m (137,783 sq ft) of retail space behind an existing facade. Prior to completion the entire building was leased for 12 years to Galeries Lafayette, H&M and Burton.
Hammerson chief executive, John Richards, said: “This transaction demonstrates the continuing strength of the Paris property investment market and the strong interest from international investors. It enables us to crystallise a substantial development profit and will provide funds for the group’s development programme.”
The deal is DEKA’s first retail acquisition in Paris.
Hammerson recently bought a block of buildings centred on 14 boulevard Haussmann for £106m and will develop 31,100 sq m (335,000 sq ft) of offices.
Hammerson was advised by Jones Lang LaSalle on the sale of 54 boulevard Haussmann.
EGi News 25/09/01
