Acquisition of Interest in French Shopping Centre

Hammerson PLC
3 July 2000


Hammerson Investment in French Shopping Centre

 
 
Hammerson has exchanged contracts to acquire a 56% interest in Bercy 2, a
35,000 square metre shopping centre situated in the south east of Paris, from
Whitehall, for FF462 million (£44million). Hammerson's ownership will extend
to 19,733 square metres. The acquisition, completion of which will take place
in September 2000, will be financed from the group's existing resources.
 
Adjoining the Peripherique and between Charenton and the 12eme
arrondissement, Bercy 2 is arranged over four floors with 2,287 car spaces.
The centre was built in 1990 and refurbished in 1997. The principal tenants
are a Carrefour hypermarket, H&M, Extrapole and La Grande Recre. A total of
69 retailers occupy the centre and only two units are vacant.
 
Bercy 2 provides an initial yield of 5.5%. The current passing rents are
FF26.7 million (£2.6 million) per annum, compared with an estimated market
rental value of FF43.6 million (£4.2 million) per annum.
 
Commenting on the transaction, John Richards, Hammerson's Chief Executive,
said:
 
'This is an excellent transaction for Hammerson, which enhances our French
shopping centre portfolio. French consumer spending continues to grow at a
healthy rate and, since the refurbishment in 1997, the turnover of the centre
has increased by 40%. Bercy 2 provides excellent reversionary income
potential. Following the acquisition, Hammerson's French portfolio will
represent approximately 25% of the group's total assets.'
 
 
For further information:
 
John Richards                    Tel: [phone]
Chief Executive               Fax: [phone]
 
Christopher Smith               Tel: [phone]
Director of Corporate Affairs          Fax: [phone]