Hammerson sells Strasbourg's Place des Halles for £166m

Hammerson has sold its 64.5% share of the Place des Halles shopping centre in Strasbourg, France for a total net vendor price of £258m, slightly above June's book value.

Contracts have been exchanged with LaSalle Investment Management, the co-owner of the centre, and the sale is expected to occur before year end.

Place des Halles, which has space for 120 stores and restaurants and attracts 10 million shoppers per year, generates an annual headline rent of €14.3m (£12.7m).

The FTSE 100 group has undertaken several recent asset management initiatives, including a full mall refurbishment and the creation of new multi-story units including the largest Zara flagship store in the east of France, while beginning remodelling of the exterior façade this year.

On completion of the sale a small portion of the £166.4m proceeds are subject to a guarantee on routine leasing discussions ongoing at the point of transaction.

"This disposal is in line with our focus on strategic assets in France with value creation potential," said chief executive David Atkins. "We remain committed to reducing leverage ahead of progressing with our development pipeline and we remain confident of achieving our capital recycling strategy this year."