In a recent update on its financial performance, Hammerson, a major player in the UK property market, announced the sale of a significant stake in the popular Paris shopping destination Italie Deux to AXA IM – Real Assets. This strategic move, which also included the forward sale of a portion of the mall’s Italik extension, generated an impressive £423m (€473m) for the company. While the sale was at a discount to the property’s book value, Hammerson sees this transaction as a valuable opportunity to reduce its debt and strengthen its financial position.
Italie Deux, located on the bustling left bank of Paris, is a bustling hub of retail, leisure, and cultural attractions that draw in over 12 million visitors annually. With flagship stores from renowned brands such as Printemps, Zara, and Sephora, the mall is a key player in the Parisian retail scene. The upcoming Italik extension, expected to open its doors in September 2020, will further elevate the mall’s offerings with additional retail spaces, dining venues, and leisure experiences.
Hammerson, known for its ownership and management of prominent shopping destinations across the UK and Europe, has been actively working to maximize the value of its properties. By engaging in strategic partnerships like the one with AXA IM – Real Assets and divesting retail park assets, the company is demonstrating its commitment to fortifying its financial health. Despite challenges in the UK market, such as declining rental income from retailer restructurings like Company Voluntary Arrangements (CVAs), Hammerson remains focused on implementing sound business strategies.
CEO David Atkins has acknowledged the changing dynamics in the retail sector, particularly the pressures faced by traditional high street fashion brands. In response, Hammerson is actively diversifying its tenant mix to include categories with strong customer appeal and rent growth potential. By prioritizing leases to leading consumer and food & beverage brands, the company has maintained high occupancy rates across its key markets.
While the retail landscape evolves, Hammerson continues to see success in its premium outlet malls, where brands are experiencing increased sales and foot traffic. The company is optimistic about the growth opportunities in off-price luxury sales and the positive impact of long-haul tourism on tax-free shopping at its outlets. Looking forward, Hammerson remains committed to leveraging its portfolio to drive sustainable growth and navigate the ever-changing retail environment.
For more information on Hammerson and its recent developments, visit their official website here.
To learn more about the Italie Deux shopping destination, check out their website here.
