Hammerson sells its last German property

13th May 2009 07:22

Property company Hammerson has sold the last of its property in Germany, raising gross proceeds of €70m.The sale price represents a net initial yield of 8%. Transaction costs are expected to eat €1m of the gross proceeds.Hammerson is selling Forum Steglitz to Europa Fund III, a pan-European fund investment fund set up by private equity group Europa Capital.Hammerson acquired Forum Steglitz, a 32,000 square metres shopping centre in Berlin's Schloßstraße, in 2000, and carried out a refurbishment in 2006. At the end of 2008 the centre was valued at €93.1m. The sale will reduce administration costs by approximately €0.6m per annum, Hammerson said.