Wrap Text
Hammerson sells major stake in Italie Deux for £423m
Hammerson plc
(Incorporated in England and Wales)
(Company number 360632)
LSE share code: HMSO JSE share code: HMN
ISIN: GB0004065016
(“Hammerson” or “the Company”)
29 July 2019
Hammerson sells major stake in Italie Deux for £423m
Over 90% of 2019 disposal target reached
Hammerson plc (“Hammerson”) has exchanged contracts with AXA Investment Managers - Real
Assets (“AXA IM - Real Assets”), a global leader in real asset investments and the leading real estate
portfolio and asset manager in Europe, acting on behalf of clients, for the sale of a 75% stake in the
Parisian shopping destination Italie Deux, and the forward sale of 75% of the Italik extension for a
total of £423m (€473m).
The disposal reflects a 4.1% net initial yield on Italie Deux. The total sale price represents a 8.5%
discount to December 2018 book value and marginally below end of June 2019 book value.
As part of this transaction Hammerson will complete the Italik extension, with a projected cost to
complete of £18m as at 30th June 2019, in addition to other committed refurbishment works.
Italie Deux is located on the left bank of Paris and provides a unique mix of retail, leisure and cultural
space. Welcoming over 12m visitors a year, leading brands within the flagship destination include
Printemps, Fnac, Zara, Sephora and Carrefour. A 1,000-seat theatre, Le 13ème Art, also opened in the
centre in September 2017, offering a new cultural scene in Paris. A partnership has recently been
signed with one of the main theatres in Paris, le Théâtre de la Ville.
The 6,400m2 Italik extension, will deliver a further 1,900m2 of retail, 1,800m2 of F&B, 1,500m2 of co-
working and innovative activities, and 1,200m2 of events and leisure space. Italik is due to open in
September 2020 and is already 41% pre-let. Closing of the transaction relating to the extension will
take place 18 months after the extension completes.
The new joint venture follows the creation of the first partnership with AXA IM - Real Assets in 2014
at Hammerson’s flagship destination, Cabot Circus. As with the existing joint venture in Bristol,
Hammerson will continue to manage the French flagship destination.
The latest transaction takes Hammerson’s total disposals in 2019 to £456m and over 90% of its
£500m target for the year. This follows the sale of £33m of retail park assets in the first half of the
financial year.
The Italie Deux element of the transaction is expected complete in autumn 2019 and the proceeds
will be used to reduce debt and build further balance sheet strength. Following the deal,
Hammerson’s net debt stands at £3.1bn on a pro forma basis.
David Atkins, Hammerson Chief Executive, said: “This transaction provides an opportunity to realise
substantial disposal proceeds whilst also retaining an interest in a high quality European destination
with a long term partner.
“Our number one priority is to reduce debt and build balance sheet strength. This transaction means
we have reached over 90% of our 2019 disposal target. We are in advanced negotiations on
additional asset sales and the creation of this joint venture once again highlights the appetite for
investors to partner with skilled sector specialists.”
John O’Driscoll, European Head of Transactions at AXA IM - Real Assets added: “This transaction
provides us with a fantastic opportunity to secure access, on behalf of clients, to a prime central Paris
retail destination. Italie Deux is a major, well anchored shopping centre with an attractive catchment
and strong track record of performance located in a key global city.
“While we have seen a build-up of increasingly negative sentiment toward the retail sector where all
assets, regardless of their operational performance and other compelling fundamentals, are viewed
similarly, we believe that shopping centres with characteristics such as these will maintain their
relevant position in the retail universe over the long term. We are delighted to be working with the
Hammerson team to realise the significant future potential of this asset.”
ENDS
Hammerson has its primary listing on the London Stock Exchange and a secondary inward listing on the
Johannesburg Stock Exchange.
Sponsor:
Investec Bank Limited
Press Contacts
Hammerson
Catrin Sharp, Head of Corporate Communications
Tel: +44 20 7887 1063
Catrin.sharp@hammerson.com
FTI Consulting (for Hammerson)
Dido Laurimore
Tel: +44 20 3727 1000
Dido.Laurimore@FTIConsulting.com
Notes to Editors
Hammerson
Hammerson create vibrant, continually evolving spaces, in and around thriving European cities, with a focus on
flagship retail destinations and Premium Outlets. As of 30th June 2019, our portfolio of high-quality venues
had a value of £9.5 billion and includes 21 flagship destinations, 12 convenient retail parks and investments in
20 premium outlet villages, through our partnership with Value Retail and the VIA Outlets joint venture. Key
retail venues include, Bullring & Grand Central, Birmingham, Bicester Village, Oxfordshire, Freeport Lisboa
Fashion Outlet, Lisbon, Dundrum Town Centre, Dublin; and Les Terrasses du Port, Marseille. We manage over
2,000 brand relationships and during trading hours, over 80,000 people visit our shopping centres hourly
across our flagship destinations in the UK, France & Ireland.
Date: 29/07/2019 08:00:00
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