ACQUISITION OF RETAIL VENUES
Hammerson grows Europe portfolio
Retail property group Hammerson has acquired four retail outlets through its partnership with VIA Outlets
Retail property group Hammerson has acquired four retail outlets through its partnership with VIA Outlets as part of its growth strategy in the European outlet market. The retail venues are located close to major cities in Germany, Portugal, Spain and Poland and represent a total gross asset value of €587m and are being acquired at a blended net initial yield of 5.5%. These centres tend to sell high-end, often end-of-season goods at discount prices in tourism nodes. The transaction takes the total size of the VIA Outlets portfolio to €1.1bn across 10 assets. It means about 17% of Hammerson’s gross asset value is exposed to the outlet retail market. "In line with Hammerson’s 47% interest in VIA Outlets, its share of the acquisition funding, taking into account existing centre-level debt financing, will be €170m," said Timon Drakesmith, chief financial officer and MD, Premium Outlets, Hammerson. "The transaction is accretive to forecast earnings per share and net asset value per share...
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