Hammerson, the prominent British property giant, has successfully sold its 25% stake in Italie Deux, a renowned shopping center located in the heart of Paris. The buyer of this stake is Ingka Centres, a subsidiary of Ingka Group which is the parent company of Ikea. The transaction was finalized at a price of €164 million in cash. It is worth noting that Hammerson had sold 75% of its stake in Italie Deux to AXA Investment Managers for €430 million in 2019.
The agreement with Ingka Centres was settled at a 4% discount to the book value of the properties as of December 31, 2022. The successful sale of the stake is in line with Hammerson’s strategy to simplify its portfolio and bolster its financial standing. The proceeds from this transaction will aid in reducing the company’s net debt and strengthening its balance sheet. Hammerson has completed several disposals in 2022, generating total proceeds of approximately £360 million. This is part of their commitment to achieve £500 million of disposals by the end of 2023.
Italie Deux is widely recognized as an iconic and popular shopping destination in Paris. It is celebrated for its flagship retail stores, leisure activities, and diverse dining options. With its attractive offerings, the shopping center draws over 11 million visitors each year. It is home to renowned brands such as Zara, Sephora, and Carrefour. Ingka Centres intends to incorporate Italie Deux, along with the recently added ItaliK extension and the adjacent office complex Apollo, into its first urban meeting place in France. Sustainability is a key focus for Ingka, and the company aims to achieve 100% renewable energy by 2030.
This acquisition signifies Ingka Centres’ fourth urban meeting place, following the success of Livat Hammersmith in London, which recently celebrated its one-year anniversary, as well as locations in Toronto and San Francisco. Ingka Centres is also actively engaged in developing new meeting places in markets such as India and China, tailoring its approach to meet the needs of the local populace. By integrating Italie Deux into its portfolio, Ingka Centres solidifies its presence in the European retail market and underscores its commitment to delivering innovative and sustainable shopping experiences.
Useful links:
1. Hammerson official website
2. Ingka Group official website
