Hammerson snaps up French shopping centre

9th Jan 2014 07:05

Property development and investment company Hammerson has agreed to buy a majority stake in Saint Sébastien shopping centre in Nancy, North East France, from AXA Real Estate for 109m pounds. The acquisition is part of retail property group's focus on generating income growth through key destinations in the UK and France, it said.The stake generates gross annual rents of £7m, representing a 6% yield on the purchase price including transaction costs, the FTSE-100 firm explained. Chief Executive David Atkins said: "This acquisition is consistent with our strategy of growing income by creating successful retail destinations. This is a rare opportunity to selectively extend our retail footprint in France, and provides a good opportunity for us to use our expertise to create value through active management of the centre. "Nancy is a vibrant city with a wealthy catchment area, in which Saint Sébastien has the prominent retail position." CJ