UK property REIT Hammerson has exchanged contracts for the sale of its remaining property in Germany, Forum Steglitz, to Europa Fund III, a pan-European investment fund launched by Europa Capital LLP. Hammerson will receive gross proceeds of EUR 70 mln from the sale, representing a net initial yield of 8%. Transaction costs are expected to be in the order of EUR 1 mln.
UK property REIT Hammerson has exchanged contracts for the sale of its remaining property in Germany, Forum Steglitz, to Europa Fund III, a pan-European investment fund launched by Europa Capital LLP. Hammerson will receive gross proceeds of EUR 70 mln from the sale, representing a net initial yield of 8%. Transaction costs are expected to be in the order of EUR 1 mln.
Hammerson acquired Forum Steglitz, a 32,000 m2 shopping centre in Berlin's Schloßstraße, in 2000, and carried out a refurbishment in 2006. The centre was valued at EUR 93.1 mln at 31 December 2008. Net rental income in 2008 was EUR 3.8 mln. The sale will reduce administration costs by EUR 0.6 mln per annum, Hammerson said.
Chief executive John Richards of Hammerson said: 'Forum Steglitz was Hammerson's only remaining asset in Germany. The proceeds of the sale will be used to reduce group borrowings.'
Europa Capital is an independent real estate fund management group operating from offices across Europe. Since 1995, Europa Capital’s principals have collectively raised six real estate funds and are committed to over 60 transactions totalling in excess of EUR 5 bn across 17 European countries.
