Private equity firm L Catterton, which is backed by luxury conglomerate LVMH, has finalised the purchase of 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 has received a £600 mln cash injection from the sale, which it would use to reduce net debt and invest in core assets.
The sale was first announced in July.
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.
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.
Rita-Rose, CEO of Hammerson plc, commented: 'This is a significant moment for Hammerson. Three years ago, we promised a turnaround of the business and today’s completed Disposal means it has now been delivered. The Disposal immediately deleverages our business and opens up an exciting new era for Hammerson, focused on accelerating growth whilst maintaining our operational grip and financial discipline. Encouraged by a strong operational performance over summer, I am excited that we are now firmly on the front foot and ready to build on our growing momentum and proven track record over recent years.'
Bicester Village by Des Blenkinsopp under CC licence
