Over 90% of 2019 disposal target reached after Paris sale
Hammerson has exchanged contracts with AXA Investment Managers – Real Assets 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.
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.
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.
Chief Executive David Atkins said: “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.”