Hammerson has agreed to acquire two retail park developments in France, representing a total investment of about EUR 50 mln. The company said it has exchanged contracts to acquire the freehold of a proposed development, St Omer Retail Park, for EUR 30 mln. The project will be developed by the current owner SCCV des Frais Fonds, a 50/50 joint venture between CFA Nord and local development company PALM Promotions. Hammerson will pay 30% of the purchase price upon start of the site in January 2008, and the rest following completion. The site, located between the French cities of Calais and Lille, will include some 24,000 m[sup]2[/sup] of retail space. Around 89% of the scheme is pre-let, with principal tenants including Boulanger, Gifi, Intersport and Tati. The estimated net rental income upon completion in mid-2009 is EUR 1.75 mln per annum, representing a net initial yield of 5.9%.
Hammerson has agreed to acquire two retail park developments in France, representing a total investment of about EUR 50 mln. The company said it has exchanged contracts to acquire the freehold of a proposed development, St Omer Retail Park, for EUR 30 mln. The project will be developed by the current owner SCCV des Frais Fonds, a 50/50 joint venture between CFA Nord and local development company PALM Promotions. Hammerson will pay 30% of the purchase price upon start of the site in January 2008, and the rest following completion. The site, located between the French cities of Calais and Lille, will include some 24,000 m2 of retail space. Around 89% of the scheme is pre-let, with principal tenants including Boulanger, Gifi, Intersport and Tati. The estimated net rental income upon completion in mid-2009 is EUR 1.75 mln per annum, representing a net initial yield of 5.9%.
Hammerson has also agreed to buy the development site of Cap Malo Retail Park, near Rennes, from GVA Collyer Coxhead Cap Malo. Hammerson will pay EUR 10.3 mln for the five-hectare site. A planning application has been submitted and the result is expected shortly. Additional total development costs are estimated at EUR 10.6 mln, with work on site expected to start in April 2008 for completion in April 2009. The forecast net initial yield on completion is 6.2%.
John Richards, ceo of Hammerson, said: 'Hammerson's strategy is to expand its business in France. These two acquisitions provide attractive development opportunities and significantly increase the scale of the group's activities in the French retail park sector.'
