Private equity firm L Catterton, which is backed by luxury conglomerate LVMH, has bought Hammerson's 42% stake in outlet mall operator Value Retail.
The stake, priced at £1.5 bn (€1.8 bn), has been divested at a 24% discount to its 2023 gross asset value. Hammerson said it would receive a £600 mln cash injection from the sale, which it would use to reduce net debt and invest in core assets.
Value Retail owns a dozen retail assets in Europe and Asia, including Bicester Village outlet mall in Oxfordshire, Fidenza Village in Milan, and Chinese outlets also based on the UK format such as Suzhou Village.
A L Catterton spokesperson said: 'With its high-quality portfolio, reputation for luxury and commitment to delivering a distinctive experience to customers, Value Retail is well positioned for growth and continued success.'
The move follows a series of retail-led divestments initiated by Hammerson since 2020, coinciding with the arrival of CEO Rita-Rose Gagné. Last year, the REIT sold its 50% stake in the Croydon Partnership, which includes the Whitgift and Centrale shopping centres, while it also offloaded Victoria Leeds in 2022 for €144 mln.
Gagné said of the latest transaction: 'This is a transformational deal for Hammerson, generating cash proceeds of £600 mln whilst removing an overweight, low-yielding and minority stake, and positioning us for accelerated growth and value creation.'
Bicester Village by Des Blenkinsopp under CC licence
