The business announced the sale of its Value Retail business to multinational private equity firm L Catterton, backed by French luxury good giant LVMH, on Monday.
Hammerson said the sale will generate around £600 million in cash proceeds.
The firm told investors it would be able to reduce its debts, invest in other assets and hand up to £140 million to shareholders through a buyback as a result.
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The deal was worth around £1.5 billion. (Image: Newsquest)
Hammerson owned almost 40 per cent of the business, which owns nine luxury shopping destinations, including sites near Barcelona, Paris and Milan.
Rita-Rose Gagne, chief executive officer of Hammerson, said: “This is a transformational deal for Hammerson, generating cash proceeds of around £600 million whilst removing an overweight, low-yielding and minority stake, and positioning us for accelerated growth and value creation.
“I’m excited about the opportunity this gives us to build on our momentum and track record of the last three years.
“We are at a point in the cycle where I can now be on the front foot to capture the exceptional value creation opportunities I see in the near, medium and long-term.”
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Michael Chu, global co-chief executive of L Catterton, said: “With its high-quality portfolio, reputation for luxury, and commitment to delivering a distinctive experience to customers, Value Retail is well positioned for growth and continued success.
“We have deep experience investing in luxury retail, and we are eager to leverage our operational expertise and global network of established relationships to partner with Value Retail and propel the business forward.”
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