Hammerson offloads Parisian retail space for a good price
FTSE 100 real estate investment trust (REIT) Hammerson is to dispose of its freehold for 54-60 rue du Faubourg Saint-Honoré in Paris.
FTSE 100 real estate investment trust (REIT) Hammerson is to dispose of its freehold for 54-60 rue du Faubourg Saint-Honor in Paris.
The company has exchanged contracts with Ramsbury AB to sell the site for €165m, slightly above its December 2011 book value.
Hammerson bought the buildings, located in Paris's luxury retail quarter (8th arrondissement), back in 2005 and the retail element of the 8,000 square metre mixed-use property has recently been redeveloped.
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The 3,900 square metres of retail space is currently occupied by designer brands including Burberry, Moschino, Jenny Packham and Bally. The net passing rent is €7.3m, taking account of stepped rents.
"This is a flagship location in Paris and utilising our development and leasing expertise we have attracted prestigious retail brands for this landmark scheme," according to Chief Executive David Atkins.
"We have maximised our asset management opportunities and this disposal crystallises a substantial profit on cost, further enhancing our financial flexibility to undertake refurbishment, development and acquisition opportunities within our retail portfolio" he said.
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