Hammerson sells stake in Bicester Village owner to L Catterton

Shopping centre owner Hammerson has sold its entire interest in Value Retail to Silver Bidco, a newly-formed company established by LVMH-backed L Catterton, for an enterprise value of £1.5 billion.

Hammerson previously held 42% of Value Retail, which is the creator and operator of The Bicester Collection Villages. This deal sees Hammerson receive net cash proceeds of £600 million from the sale with £350 million to be reinvested into core projects and £95 million to be used to reduce debt.

It has also announced a £140 million share buyback along with a one-for-10 share consolidation.

Rita-Rose Gagné, CEO of Hammerson, said: "This is a transformational deal for Hammerson, generating cash proceeds of c.£600m whilst removing an overweight, low yielding and minority stake, and positioning us for accelerated growth and value creation.

"The Disposal focuses our portfolio on prime urban real estate with a transformed capital structure and the capacity and capability to advance our strategy in higher yielding opportunities with stronger returns, whilst enhancing returns to shareholders.

"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. This is exactly what this transaction will deliver."

Michael Chu, Global Co-CEO of L Catterton, added: "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."