Hammerson buys French shopping centre for £72m

By Kasmira Jefford - Thursday, October 19, 2017 14:12

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Hammerson has bought a 118,400 sq ft shopping centre adjoining its centre Les Trois Fontaines, in Cergy Pontoise, Paris, for €81m (£72m) from a private vendor.

Les Trois Fontaines is established as the leading shopping destination for the Val d'Oise region of Paris and is one of Hammerson's flagship assets in France. This acquisition of the adjoining Cergy 3 centre will strengthen Hammerson's control of the shopping offer in the area.

The company is planning a 355,000 sq ft extension of the centre alongside a wider project by the city authorities in Cergy Pontoise. The proposed scheme would take the total retail space to over 1m sq ft with 3,700 car park spaces, 230 stores and a restaurant and leisure offer to create one of the leading retail centres in the Paris region.

The extension plans are supported by the co-owners, Auchan hypermarket, and the city authorities. Building permits and retail consents have been obtained, a contractor has been selected and pre-letting is progressing well to be in a position to start in 2018.

Cergy 3 is anchored by FNAC and has 46 units let to retailers and restaurants including Grande Récré and Foot Locker producing €3.2m (£2.8m) of rental income.

David Atkins, Hammerson chief executive, said: "The purchase of Cergy 3 strengthens our retail presence in the affluent Western catchment of Paris adding to the scale of Les Trois Fontaines, which trades amongst the top French shopping centres. It allows us to manage all leasing and ensure a consistent quality across the whole centre. The future development of Les Trois Fontaines provides the opportunity to further enhance one of Hammerson's flagship retail schemes in France adding new international fashion operators and increased dining and leisure."

kjefford@costar.co.uk

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