Hammerson’s (LON:HMSO) share price inched up this morning after the real estate investment trust (REIT) announced that it had sold its stake in the Grand Maine shopping centre, located south west of Angers in France, to an unnamed French institutional investor for €63.2 million (£45.3 million).
Grand Maine comprises 8,600 square metres of retail space with 57 units over two levels and is adjacent to a large Carrefour supermarket. The property, which was refurbished by Hammerson in 2013, has 95 percent occupancy and generates gross rental income of €3.3 million (£2.4 million).
Today’s transaction comes after last month, Hammerson sold its interest in Bercy 2 shopping centre in Charenton-Le-Pont, Paris, to Tikehau Capital Partners for €64 million (£47 million). Citing this move, the REIT’s chief executive, David Atkins, said in today: "This disposal, along with the recent sale of Bercy 2, Paris, represent an opportunity to take advantage of strong investor demand for retail real estate assets and achieve good pricing ahead of book value.” The CEO further reaffirmed Hammerson’s strategy of “actively managing our portfolio in France to create a platform of leading retail destinations.” For this purpose, the firm is recycling proceeds and investing into well positioned new schemes, such as it new development at Beauvais, which is due to open in November.
Hammerson’s share price posted modest gains this morning. As of 10:31 BST, the stock was changing hands at 642.50p – 0.39 percent up intraday. In the year to date, the FTSE 100-listed property group has seen its hares gain almost six percent.