UK REIT Hammerson has exchanged contracts to sell 51% of its interest in the O'Parinor shopping centre, Aulnay-sous-Bois, near Paris, to the National Pension Service of Korea (NPS), advised by Rockspring Property Investment Managers. The transaction amounts to EUR 217 mln, after costs of EUR 5 mln. NPS and Hammerson have agreed that NPS can purchase a further 24% interest in autumn 2011 at a price estimated at around EUR 106 mln.

UK REIT Hammerson has exchanged contracts to sell 51% of its interest in the O'Parinor shopping centre, Aulnay-sous-Bois, near Paris, to the National Pension Service of Korea (NPS), advised by Rockspring Property Investment Managers. The transaction amounts to EUR 217 mln, after costs of EUR 5 mln. NPS and Hammerson have agreed that NPS can purchase a further 24% interest in autumn 2011 at a price estimated at around EUR 106 mln.

The centre, held in co-ownership with Carrefour and Redevco, was originally acquired by Hammerson in 2002. The company completed a 24,000 m2 extension and development in 2008, taking the total size of the centre to 90,000 m2. The total cost of the centre to Hammerson, including the recent extension, is EUR 274 mln. The centre was valued at EUR 432 mln at end-June 2010, generating EUR 21.8 mln of net income. Hammerson will retain the asset management role for the new joint venture.

In a statement on Thursday, Hammerson said that the disposal 'will allow it to realise value, and release capital for investment opportunities in the UK and France which offer superior returns'. The sale is also in line with the company's strategy to reduce its exposure to single large assets whilst maintaining critical mass in the sector. Following this transaction, Hammerson's gearing will be 56%, providing substantial capacity for future acquisitions, the company said.

Chief Executive David Atkins commented: 'Our strategy is to improve the growth prospects of the portfolio by releasing capital from mature assets where we have created value, such as O'Parinor, reinvesting into assets such as Silverburn in Glasgow and future developments such as Les Terrasses du Port in Marseille.'

The purchase is the first Continental European deal brokered by Rockspring on behalf of NPS, the world's fifth largest pension fund. Within the last twelve months, Rockspring has already acquired 40 Grosvenor Place and 88 Wood Street in London on behalf of NPS within this mandate structure.