Ther German fund will pay Hammerson £67 million ($106.8 million) on the handover of the property in November with the remaining £4.79 million ($7.6 million) on the meeting of certain conditions. One of these is a a rental guarantee for vacant space amounting to a maximum of £422,529 ($674, 071) a year for five years.
The book value of the property at the end of December 2002 was £82 million ($130.8 million) while the rental income is around £4.15 million ($6.62 million) a year. Hammerson bought the leasehold interest in the mall units of the shopping centre in 1998, and subsequently acquired the freehold. This was followed up with a major improvement programme which was completed in 2002.
John Richards, chief executive of Hammerson said: "This transaction is in line with our stated strategy of reducing our exposure to the German retail sector." He added: ""Following completion, the portfolio in Germany will represent less than 6% of Hammerson's total portfolio. The group is continuing to invest in attractive opportunities in the UK and France."
Hammerson was advised by Jones Lang LaSalle.
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