🐂 Not all bull runs are created equal. November’s AI picks include 5 stocks up +20% eachUnlock Stocks

Hammerson gets 70 mln eur for Berlin shopping mall

Published 05/13/2009, 11:06 AM
Updated 05/13/2009, 11:16 AM
HMSO
-

LONDON, May 13 (Reuters) - UK property company Hammerson said on Wednesday it would get gross proceeds of 70 million euros ($95.54 million) from the sale of its remaining property in Germany, a Berlin shopping centre.

"The proceeds of the sale will be used to reduce group borrowings," Hammerson Chief Executive John Richards said.

Hammerson said it had exchanged contracts for Forum Steglitz with Europa Fund III, a pan-European investment fund launched by Europa Capital III, Hammerson said in a statement.

The gross proceeds equated to a net initial yield of 8 percent. Transaction costs are expected to be about 1 million euros, Hammerson said.

The sale of the 32,000-square-metre shopping centre will cut Hammerson's administration costs by about 600,000 euros a year.

Forum Steglitz was valued at 93.1 million euros on Dec. 31, 2008. In 2008 produced net rental income of 3.8 million euros.

By 1434 GMT, Hammerson's shares were down 9.5 percent at 292 pence, while the FTSE 350 Real Estate index shed 7.7 percent. (Reporting by Andrew Macdonald; Editing by Jon Loades-Carter) ($1=.7327 Euro)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.