Bullring owner trims portfolio with £258m disposal

The owner of Birmingham’s Bullring Shopping Centre has trimmed down its portfolio with the disposal of an asset in France in a deal worth £258m.

Hammerson has exchanged contracts for the sale of its 64.5% share of Place des Halles shopping centre in Strasbourg.

LaSalle Investment Management will purchase the centre from Hammerson and its co-owner, on behalf of funds under management. The deal is worth £258m, slightly above the June 30, 2017 book value.

Place des Halles was considered a prime regional shopping centre, totalling 41,600m2 and comprising 120 stores and restaurants. The centre benefits from strong transport links and attracts 10 million shoppers per year.  The property generates an annual headline rent of £12.7m.

Hammerson had invested heavily in the shopping centre to improve the quality of it offer. Measures included a full mall refurbishment and the creation of new units including the largest Zara flagship store in the East of France. Remodelling of the centre’s exterior façade also began this year.

Completion of the sale is expected to occur before year end. It is expected the proceeds of the deal will be ploughed back into the group but there are no details of specific proposals.

David Atkins, CEO Hammerson, said: “This disposal is in line with our focus on strategic assets in France with value creation potential. We remain committed to reducing leverage ahead of progressing with our development pipeline and we remain confident of achieving our capital recycling strategy this year.”

Hammerson’s portfolio of European shopping destinations is valued at around £10.5bn and includes 23 prime shopping centres, 17 convenient retail parks and investments in 20 premium outlet villages.

In addition to the Bullring, key UK investments include Bicester Village in Oxfordshire.