Hammerson divests Paris mixed-use asset for EUR 165m

UK REIT Hammerson has exchanged contracts to sell the freehold for 54-60 rue du Faubourg Saint-Honoré in Paris’ eighth arrondissement to Swedish investor Ramsbury for EUR 165 mln, slightly above its December 2011 book value.

Hammerson acquired the buildings in Paris’ luxury retail quarter in 2005 and the retail element of the 8,000 m² mixed-use property has recently been redeveloped.

Following the refurbishment, the scheme comprises 3,900 m² of retail space that is occupied by designer brands including Burberry, Moschino, Jenny Packham and Bally. A further 3,900 m² of residential accommodation and 200 m² of office space completes the scheme. The scheme generates EUR 7.3 mln in annual rents.

'This is a flagship location in Paris and utilising our development and leasing expertise we have attracted prestigious retail brands for this landmark scheme,' said David Atkins, Chief Executive of Hammerson. 'We have maximised our asset management opportunities and this disposal crystallises a substantial profit on cost, further enhancing our financial flexibility to undertake refurbishment, development and acquisition opportunities within our retail portfolio.'

Hammerson was advised by CBRE, BNP Paribas Real Estate and Arsène Taxand and Ramsbury was advised by Cushman & Wakefield.

Hammerson announced plans earlier this month sell its entire office portfolio worth EUR 735 mln and refocus as a specialist retail group operating in the UK and France. Hammerson intends to complete the disposal programme over the next three years In total, offices represent 11% of the company's portfolio.