UK REIT Hammerson said on Thursday that it has completed the sale of its 75% stake in the Parisian shopping destination Italie Deux to AXA Investment Managers - Real Assets
for €430 mln following clearing of the City of Paris pre-emption right on the asset.
Hammerson first announced in July that it has agreed terms to sell the asset.
The transaction represented a net initial yield of 4.1% on Italie Deux. The total sale price reflects an 8.5% discount to December 2018 book value and is marginally below end of June 2019 book value.
An extension of the centre known as Italik, which will extend its retail offering on to avenue d’Italie, is currently being progressed and is due to complete in spring 2020, adding 6,400 m2 of new GLA across 12 new retail, catering and leisure units, together with a coworking facility.
The forward sale of 75% of the Italik extension for an additional €43 mln is expected to complete in early 2022, 18 months after the opening of the development.
Italie Deux, the second largest shopping centre in Paris and a dominant retail and leisure destination in the 13th arrondissement on the left bank, comprises 130 units across 61,000 m2 of space, plus a 4,500 m2, 1,000 seat theatre. With over 12 million visitors a year, key brands include Printemps, Fnac, Zara, Sephora and Carrefour.
Hammerson plans to use the proceeds to reduce debt and strengthen the balance sheet.
