Acquisition of SQY Ouest

RNS Number : 0911B

Hammerson PLC

11 February 2011

 



Acquisition of SQY Ouest, Saint Quentin-en-Yvelines

Hammerson plc has acquired SQY Ouest, a 31,000m² shopping centre in Saint Quentin-en-Yvelines, in a 50:50 joint venture with Codic France. The vendor is SNC Parc culturel urbain d'animation permanente, and the consideration is €38 million. Hammerson's initial commitment is €20 million, including transaction costs.

SQY Ouest is a modern retail and leisure scheme developed in 2005. Located 20 km south west of Paris, it is adjacent to Espace Saint Quentin (a 59,000m² shopping centre, 28,000m² of which is jointly owned by Hammerson and Allianz). SQY Ouest benefits from good transport links and has over 45 retailers on four floors, including international brands such as Bershka, GoSport, Virgin Megastore and Zara. The top floor is anchored by one of UGC's most successful multiplex cinemas. SQY Ouest is currently 87% occupied, and the yield on purchase price is 9.2%, after taking account of vacancy charges and other direct costs.

 

To address certain configuration and leasing issues a restructuring of the centre was initiated, but not completed, by the previous owner. As a consequence, there is an opportunity to reconfigure the existing centre by introducing new anchor tenants, improving the catering offer, and creating additional retail space. Hammerson will manage the centre.

Hammerson was advised on the transaction by Arsene Taxand and Gide Loyrette Nouel.

David Atkins, Chief Executive of Hammerson, said:

"This is an exciting opportunity to generate strong returns for shareholders by repositioning and improving SQY Ouest. The centre will benefit from the expertise of our French team, who will apply a coordinated management approach to both SQY Ouest and Espace Saint Quentin."

Further information:

David Atkins, Chief Executive	Tel:  [phone]
Morgan Bone, Director of Corporate Communications	Tel:  [phone] [e-mail]

 

Notes to editors

Hammerson

Hammerson has been creating and managing some of the most exciting retail destinations and office buildings in Europe for over 50 years. A FTSE 100 company with a real estate portfolio in the UK and France of around £5.4 billion at 30 June 2010, Hammerson has investments in 16 major shopping centres and 17 retail parks. We own seven London office buildings, which provide 158,000 m² of prime accommodation.

Hammerson aims to be the best owner-manager and developer of retail and office property in the UK and France. We focus on prime regional shopping centres and out-of town retail, while exploiting opportunities in the office sector. Our strategy is to outperform through two areas of focus: investing in high quality property through acquisition and development, and maximising income growth. Both areas are underpinned by prudent financial management.

Codic

CODIC International has been a real estate developer since 1970. The focus of the group's developments is on mixed use projects, business parks and shopping centres. Originally active in Belgium, Codic has expanded into Luxembourg, France, Hungary, Spain and Romania. Codic has developed more than 80,000m² of space in Saint Quentin-en-Yvelines over the last ten years.

Espace Saint Quentin

Hammerson plc sold a 75% interest in the Espace Saint Quentin shopping centre, Saint Quentin-en-Yvelines near Paris, to Allianz Real Estate GmbH in October 2010. Espace Saint Quentin is now held in a 75:25 joint venture, and Hammerson continues to manage the asset.

Espace Saint Quentin is part of a larger mixed-use development including residential, offices, hotel accommodation and restaurants. Anchored by Carrefour, the centre was refurbished in 1999 and an extension added. Hammerson has since added further value through restructuring and asset management programmes.

 

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