Shopping centre owner Hammerson has sold its 42% stake in Value Retail to a subsidiary of LVMH-backed L Catterton for £1.5bn.
- The transaction will yield approximately £600m in cash proceeds for Hammerson.
- Value Retail operates nine luxury outlet centres, including Bicester Village.
- L Catterton is a significant player in the fashion industry, owning brands like Birkenstock.
- Hammerson’s CEO stated this deal marks a strategic turning point for the company.
Shopping centre owner Hammerson has entered into a binding agreement to sell its 42% stake in the renowned designer outlet group, Value Retail, to a subsidiary associated with LVMH-backed private equity firm L Catterton. This significant transaction is valued at £1.5 billion. The sale is expected to generate cash proceeds of approximately £600 million for Hammerson, offering a substantial boost to the company’s financial positioning.
Value Retail is distinguished for operating nine prominent luxury and premium fashion outlet centres across Europe, with one of its key locations being Bicester Village in Oxfordshire. Other significant locations under Value Retail’s operation include centres situated outside major cities such as Barcelona, Brussels, Dublin, Frankfurt, Paris, Madrid, Milan, and Munich. These centres are celebrated for offering high-end fashion merchandise at value prices, attracting a global customer base.
L Catterton, the purchasing entity, is a formidable force in the global fashion industry. Known for its extensive portfolio, the equity firm owns renowned fashion and footwear brands such as Birkenstock and Golden Goose. Acquiring a major stake in Value Retail enhances L Catterton’s already substantial presence in the luxury retail market, strategically positioning it for further growth in the sector.
Rita-Rose Gagné, Hammerson’s Chief Executive Officer, commented on the transaction, describing it as a “transformational deal” for Hammerson. She highlighted that the sale not only provides considerable cash proceeds but also alleviates an “overweight, low-yielding and minority stake,” thus placing the company on a path of accelerated growth and value creation.
This landmark transaction illustrates significant strategic realignments in the retail sector.
