Re Joint Venture

Hammerson PLC
18 April 2001

 
 

Hammerson in Paris Joint Venture

Hammerson plc has exchanged contracts to acquire a 50% interest in SCI Opera
Capucines from leading French insurance company, MAAF Assurances, for FF140
million (£13.4 million). SCI Opera Capucines owns a mixed use building of
approximately 11,000 m.sq. in a prime Paris location with frontages onto place
de l'Opera, boulevard des Capucines and rue du Quatre Septembre in the second
arrondissement. The property is anticipated to generate a total net rental
income of FF12.6 million (£1.2 million) in 2001 and Hammerson will receive a
50% share of income following completion.
 
The two partners propose to redevelop the buildings behind the existing
facade to create approximately 3,500 m.sq. of high quality retail space on
three levels and some 4,000 m.sq. of modern, high specification office
accommodation on five levels. The plans also incorporate 3,000 m.sq of
residential units and 55 car parking spaces.
 
Hammerson will work with MAAF to secure the necessary approvals and building
permits and will be responsible for managing the subsequent redevelopment. It
is anticipated that a construction period of approximately two years will
start in mid 2004. Hammerson's total costs are estimated at approximately
FF340 million.
 
Commenting on the transaction John Richards, Chief Executive, said
 
'The proposed building is in a first class location both for shopping and
offices where our research shows continuing strong occupier demand. We are
delighted to have been selected by MAAF to work with them in this exciting
joint venture.'

This announcement follows the recent successful completion of Hammerson's
redevelopment of 54 boulevard Haussmann, Paris 9eme, a 12,900 m.sq. retail
building. Following the acquisition, Hammerson's French assets will account
for approximately 25% of the group's total portfolio. Hammerson is also
currently involved in another joint venture to redevelop 9 place Vendome,
Paris 1er.
 
 
For further information:
 
John Richards                                   Tel: [phone]
Chief Executive
 
Chris Smith
Director of Corporate Affairs
 
Gerard Devaux                                   Tel: [phone]
Director Continental Europe