Hammerson completes sale of Italie Deux mall in Paris to Ingka

By

Sandra Halliday

Published
Apr 3, 2023

British property giant Hammerson has announced the sale of its 25% stake in Italie Deux, the 62,000 sq m shopping centre in central Paris, and 100% of the 6,500 sq m Italik extension for €164 million in cash.

The buyer, Ingka Centres, is part of Ingka Group, which is also the holding company of Ikea.

In 2019, before it launched its current disposals programme, Hammerson sold 75% of its stake in Italie Deux for €430 million (£362 million) to AXA Investment Managers.

The latest deal with Ingka was concluded at a 4% discount to the 31 December 2022 book value of the properties.

Hammerson said the exit “marks the continued progress in the simplification of the company's portfolio”. The proceeds will further strengthen the balance sheet and reduce net debt.

Together with the £195 million of disposals completed in 2022, the group generated total proceeds of around £360 million against the company's commitment of £500 million of disposals by the end of 2023.

Italie Deux is one of Paris’s largest and most dominant inner-city shopping destinations. Ingka said that “together with the recent high-street extension ItaliK, and the neighbouring office complex Apollo, all three assets will be united into Ingka Centres’ first urban meeting place in France”.

It added that “sustainability will be at the forefront in line with Ingka Centres’ ambition to achieve 100% renewable energy by 2030”.

The mixed-use development has a strong blend of flagship retail, leisure and dining options that attract more than 11 million visitors annually. Current retail tenants include Zara, Sephora and Carrefour.

It becomes Ingka’s fourth urban meeting place acquisition, following Livat Hammersmith in London, which recently celebrated its one-year anniversary, Toronto and San Francisco. 

It’s also “continuing to develop larger new-build meeting places in markets such as India and China, tailoring its approach to local needs”.