Hammerson picks up EUR 450m mall development in Marseille

Hammerson has acquired Les Terrasses du Port, Marseille, one of the largest shopping centre developments anticipated in France in the next few years. The vendor is Foruminvest, a private developer based in Holland. The initial capital commitment, including acquisition costs, is expected to be approximately EUR 50 mln in the first six months.

The 52,000-m² centre will provide 150 stores, 2,850 car parking spaces and a 260 metre-wide restaurant terrace overlooking the sea. The centre is attracting strong retailer interest at this stage with over 30% of the retail space pre-let. Net rental income is anticipated to be about EUR 33 mln. Enabling work is expected to start in late 2010. The total development cost will be approximately EUR 450 mln.

London and Paris-listed Hammerson also acquired, as part of the transaction, up to four other development projects in France at pre-planning stage which could provide over 100,000 m² of retail space.

David Atkins, CEO of Hammerson said: 'Les Terrasses du Port is one of the largest retail development projects in France and an important element in the ongoing regeneration of Marseille. When completed, it will represent the largest concentration of retail in the centre of Marseille, a dynamic city with a growing population.

'This acquisition provides an exciting opportunity for Hammerson to grow its French business and capitalise on the company's strong track record of retail-led urban regeneration projects.'

The sale is the third large retail development that Foruminvest has sold since May 2009. The other projects were Le 31 in Lille, with Galeries Lafayette as one of the main tenants, acquired by Pramerica and 'K' in Kortrijk in Belgium , acquired by Union Investment.

Foruminvest was advised by Banca Leonardo and by Kempen & Co in the deal with Hammerson. Close Brothers advised Hammerson.

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