LaSalle Investment Management has exchanged contracts to acquire the Place des Halles shopping centre in Strasbourg, France, for a total net price of €291 mln, slightly above 30 June 2017 book value.
Centrally located in Strasbourg, the scheme is being sold by UK REIT Hammerson, which holds a 64.5% stake, and French insurance group CNP, who holds the minority share.
LaSalle is buying the mall on behalf of funds under management for a yield of 4.9%.
Opened in 1979 and acquired by Hammerson in 1998, Place des Halles is a prime regional shopping centre totalling 41,600m2 and comprising 120 stores and restaurants. The centre attracts 10 million shoppers per year and generates an annual headline rent of €14.3 mln.
Hammerson has undertaken several recent asset management initiatives to improve the quality of the centre, including a full mall refurbishment and remodelling of the exterior façade.
Completion of the sale is expected to occur before year end, and is subject to the usual conditions precedent. A small portion of the proceeds are subject to a guarantee on routine leasing discussions ongoing at the point of transaction.
David Atkins, CEO Hammerson, commented: 'This disposal is in line with our focus on strategic assets in France with value creation potential. We remain committed to reducing leverage ahead of progressing with our development pipeline and we remain confident of achieving our capital recycling strategy this year.'
