UK REIT Hammerson has sold Les Trois Quartiers in Paris to private equity real estate investment group MGPA for EUR 210 mln - a 24% discount on the December 2008 valuation of the property at EUR 275 mln. Les Trois Quartiers comprises almost 30,000 m[sup]2[/sup] of retail and office space in the 1st arrondissement of the French capital and generates a passing rent of EUR 19.8 mln per annum.
UK REIT Hammerson has sold Les Trois Quartiers in Paris to private equity real estate investment group MGPA for EUR 210 mln - a 24% discount on the December 2008 valuation of the property at EUR 275 mln. Les Trois Quartiers comprises almost 30,000 m2 of retail and office space in the 1st arrondissement of the French capital and generates a passing rent of EUR 19.8 mln per annum.
Commenting on the sale of one of the top 10 properties in its Anglo-French portfolio, Hammerson said the proceeds would be used to reduce debt. CEO John Richards added: 'This sale, in conjunction with the previous disposal of Forum Steglitz (in Germany), will strengthen our balance sheet. Following the sale, Hammerson will have available around £700 mln (EUR 810 mln) of unutilised committed bank facilities.'
MPGA funded the acquisition through MGPA Europe Fund III, part of the larger MGPA Global Fund III, which closed in June 2008 with commitments of US$5.2 bn. MGPA Europe Fund III raised US$1.3 bn (EUR 841.5 mln and has already made investments in Italy, Greece and Poland.
MGPA was advised in the transaction by lawyers Gide Loyrette Nouel, with technical due diligence supported by Bureau Veritas. Hammerson was advised by Jones Lang LaSalle. Lefèvre Pelletier & Associates was the lawyer, and Etude Wargny Katz, the notary.
