Acquisition of Les Terrasses

RNS Number : 4568E

Hammerson PLC

21 December 2009

 



NEWS RELEASE

For immediate release Monday 21 December

Acquisition of Les Terrasses du Port, Marseille

Hammerson has acquired Les Terrasses du Port, Marseille, one of the largest shopping centre developments anticipated in France in the next few years. The vendor is Foruminvest, a private developer based in Holland. The initial capital commitment, including acquisition costs, is expected to be approximately €50 million in the first six months.

The 52,000 m² centre will provide 150 stores, 2,850 car parking spaces and a 260 metre-wide restaurant terrace overlooking the sea. The centre is attracting strong retailer interest at this stage with over 30% of the retail space pre-let. Net rental income is anticipated to be approximately

€33 million. Enabling work is expected to start in late 2010. The total development cost will be approximately €450 million.

Benefiting from excellent transport links, the city centre project forms part of Euroméditerranée, a wider government-backed programme to regenerate Marseille, France's second largest city. Les Terrasses du Port will also be adjacent to the tourist port terminal for Sardinia and Corsica, which sees around one million tourists each year.

Hammerson has also acquired, as part of the transaction, up to four other development projects in France at pre-planning stage which could provide over 100,000 m² of retail space.

David Atkins, Chief Executive of Hammerson said:

"Les Terrasses du Port is one of the largest retail development projects in France and an important element in the ongoing regeneration of Marseille. When completed, it will represent the largest concentration of retail in the centre of Marseille, a dynamic city with a growing population.

This acquisition provides an exciting opportunity for Hammerson to grow its French business and capitalise on the company's strong track record of retail-led urban regeneration projects."

Hammerson's most recent development project in France was completed in 2008, a 25,000 m² extension to O'Parinor, to the north of Paris. In the UK it has completed three major retail-led regeneration schemes in the past 18 months: Highcross, Leicester; Cabot Circus, Bristol; and most recently Union Square, Aberdeen.

Hammerson was advised by Close Brothers and Gide Loyrette Nouel.

For further information:
David Atkins, Chief Executive, Hammerson plc	Tel: [phone]
Jean-Philippe Mouton, Managing Director, Hammerson France	Tel: [phone]
Morgan Bone, Director of Corporate Communications, Hammerson plc	Tel: [phone] [e-mail]

Notes to editors

• Hammerson is a FTSE 100 company with a real estate portfolio in the UK and France of around £4.7 billion. Hammerson has investments in 15 major shopping centres and 18 retail parks providing a total of 1.4 million m² of retail space. The Company owns seven office buildings, in central London and Paris, which provide 150,000 m² of prime accommodation. Benefiting from tax-efficient REIT status in the UK and SIIC in France, Hammerson is listed on both the London Stock Exchange and Euronext Paris. Further information is available on www.hammerson.com

 

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