Hammerson Logo

Sale of 9 Place Vendôme, Paris 1ER


Hammerson and AXA REIM France have signed a conditional agreement to sell their shares in SAS 9 place Vendôme, the joint venture company which developed and owns the major office building at 9 place Vendôme, Paris 1er. Completion of the sale is scheduled for 9 July 2007 and the purchaser, SAS Sloane place Vendôme, has paid a non-refundable deposit of £13 million (€20 million).

The purchaser will pay £226 million (€335 million) for the shares. This represents a net underlying property price of £415 million (€616 million) less deductions for shareholder loans and other net liabilities in the company. Taking into account acquisition fees, the net yield to the purchaser is below 3.5%.

Hammerson will record net proceeds of £207 million (€307 million) on the disposal of its 50% interest in the underlying property to give a surplus of £35 million (€53 million) over its 31 December 2006 value. On Hammerson’s development cost of £90 million (€133 million) its surplus is £117 million (€174 million) or 130%.

This is Hammerson’s only French property which is outside the SIIC tax exempt regime. Hammerson will provide for £18 million (€26 million) of French capital gains tax on the sale of shares and release deferred tax of £29 million (€43 million).

Hammerson has been the development manager to the 50:50 joint venture, which was formed in 1999. The scheme was completed in May 2006 and provides 22,200 m² of prime office accommodation, occupied principally by Clifford Chance, and 5,500 m² of retail space. Total rental income from the building on completion of lettings and the expiry of rent-free periods is projected to be £15 million (€23 million) per annum.
The proceeds of the sale will be reinvested in Hammerson’s development programme and further acquisitions in France.

John Richards, Chief Executive said:

“Hammerson is delighted to have had the opportunity to work with AXA REIM France on this highly profitable scheme.

The success of the development of 9 place Vendôme demonstrates Hammerson’s development skills: this was a complex project, carried out on a sensitive site in a prestigious location.

This disposal is in line with Hammerson’s policy of recycling capital from assets where we have added substantial value into new opportunities. We expect to make an announcement on further investment in France in the near future.”

John Richards, Chief Executive Tel: 020 7887 1000
Gérard Devaux, Managing Director, Continental Europe Tel: 00 33 1 5669 3000
Christopher Smith, Director of Corporate Affairs Tel: 020 7887 1019

Notes to Editors:

Hammerson plc

Hammerson plc is a leading European REIT (LSE: HMSO). Established over 50 years ago, the group has operations in the UK and France. Its high quality real estate portfolio provides around 1,200,000m² of retail space and 270,000m² of prime offices and is valued at nearly
£7 billion. In recent years the group has carried out a number of high profile office developments in the City of London and central Paris. It currently has a development programme of nearly
£1 billion and a longer-term development pipeline of some £5 billion. For more information, visit www.hammerson.com.


AXA REIM, a wholly owned subsidiary of AXA IM Group, is a specialist in real estate fund management with around €42 billion* of assets under management. AXA REIM has an extensive pan-European real estate infrastructure, with over 460 staff based in 12 offices and operating in 17 countries. As such, it is one of Europe’s largest and most diversified real estate investment management businesses providing extensive multi-disciplinary expertise across a broad variety of property types. Furthermore, AXA REIM expanded its geographical capabilities into Asia during 2006 by opening an office in Tokyo and also establishing a presence in Singapore, and into Scandinavia early 2007 opening an office in Stockholm. Visit www.axa-reim.com