Allianz RE takes 75% stake in Paris mall from Hammerson

Allianz Real Estate has exchanged conditional contracts to acquire a 75% interest in Hammerson's Espace Saint Quentin shopping centre, Saint Quentin-en-Yvelines near Paris. Hammerson, a real estate investment trust in both the UK and France, said it will continue to manage the asset which will be held in a 75:25 joint venture.

Hammerson will receive EUR 176 mln net of costs, of which EUR 3 mln is contingent upon the exercise of a purchase option by Allianz in respect of one unit in 2012.

Following the sale, Hammerson's annual net income, comprising rental income and management fees, is estimated at EUR 4.7 mln. The valuation of Espace Saint Quentin at 31 December 2009 was EUR 239 mln, at a time when passing rents were EUR 14.3 mln. Net income from the property in 2009 was EUR 13.5 mln.

Completion of the deal is expected to take place in October 2010.

Originally acquired by Hammerson in 1994 for EUR 70 mln, Espace Saint Quentin is part of a larger mixed-use development including residential, offices, hotel accommodation and restaurants. Anchored by Carrefour, the centre was refurbished in 1999 and an extension added.

Olivier Piani, CEO of Allianz Real Estate, commented: 'This centre is the third commercial asset to be acquired by Allianz Real Estate in Europe since the beginning of the year according to our investment strategy to further expand this asset class in our portfolio.'

Hammerson was advised by Jones Lang Lasalle, Arsene Taxand and Gide Loyrette Nouel.