LONDON: Hammerson Plc has entered into a binding agreement for the disposal of its entire interest in Value Retail to Silver Bidco, a newly-formed company incorporated in Jersey and established by certain affiliates of L Catterton.

The transaction implies an enterprise value of £1.5bn, generating cash proceeds of c.£600 million for Hammerson.

Rita-Rose Gagné, CEO, Hammerson plc, 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, 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.”

On 22 July 2024, the company and Hammerson UK Properties Limited (“HUK”), a wholly-owned subsidiary of Hammerson, entered into a share purchase agreement ( pursuant to which HUK has agreed to sell the entire issued share capital of its wholly owned subsidiary, Hammerson (Value Retail Investments) Limited, which holds all of Hammerson’s interests in the Value Retail Group, in consideration for €705m (equivalent to c.£600m) of total cash proceeds.

The proceeds of the disposal are intended to be deployed in line with Hammerson’s stated capital allocation framework, namely to further strengthen the balance sheet, invest for growth and value creation, and enhance distributions to shareholders.