Hammerson reduces stake in Paris asset

17th Jun 2010 07:50

Hammerson, the UK property giant, is selling a majority stake in a shopping centre near Paris, though it will continue to manage the asset. Hammerson is to sell a 75% interest in the Espace Saint Quentin shopping centre, Saint Quentin-en-Yvelines near Paris, to Allianz Real Estate GmbH, for €176m. Following completion Espace Saint Quentin will be held in a 75:25 joint venture.Following the sale, Hammerson's annual net income from the asset, comprising rental income and management fees, is estimated at €4.7m.The valuation of Espace Saint Quentin at 31 December 2009 was €239m, at which time passing rents were €14.3m. Net income from the property in 2009 was €13.5m.Hammerson has owned the asset since 1994, having paid €70m for it. It will reinvest the proceeds from the sale in other opportunities.