Disposal

RNS Number : 1371S

Hammerson PLC

13 May 2009

 



Sale of Forum Steglitz, Berlin

Hammerson has exchanged contracts for the sale of its remaining property in Germany, Forum Steglitz, to Europa Fund III, a pan-European investment fund launched by Europa Capital LLP. Hammerson will receive gross proceeds of €70 million (£62.7 million3) from the sale, representing a net initial yield of 8%. Transaction costs are expected to be in the order of €1 million.

Hammerson acquired Forum Steglitz, a 32,000 m² shopping centre in Berlin's Schloßstraße, in 2000, and carried out a refurbishment in 2006. The centre was valued at €93.1 million at 31 December 2008. Net rental income in 2008 was €3.8 million. The sale will reduce administration costs by approximately €0.6 million p.a.   

John Richards, Chief Executive of Hammerson said:

 'Forum Steglitz was Hammerson's only remaining asset in Germany. The proceeds of the sale will be used to reduce Group borrowings.'

Further information

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

Notes: 

1)    Hammerson plc is a FTSE-100 Real Estate Investment Trust which operates principally in the retail 
       sector in the UK and France. Its £6.5 billion portfolio, which provides 1.4 million m² of retail space and 
       255,000 m² of offices, includes 15 major shopping centres and 19 retail parks. 

2)    Europa Capital is an independent real estate fund management group operating from offices 
       across Europe. Since 1995, Europa Capital's principals have collectively raised six real estate funds 
       and  are committed to over 60 transactions totalling in excess of €5.0 billion across 17 European 
       countries.

3)    The exchange rate used is €1.117:£1, the rate on 12 May 2009.

 

END

 

 

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