Private equity firm L Catterton, which is backed by French luxury fashion house LVMH, has agreed to buy a 42% stake in outlet mall landlord Value Retail from the UK firm Hammerson. The transaction includes interests in nine luxury retail properties, including the Bicester shopping village, about 60 miles northwest of London, according to a statement Monday. Alongside Kildare Village, Value Retail also has similar outlets in Milan, Munich and Barcelona.
The deal values the entire company at £1.5bn (€1.78bn).
It will generate cash proceeds of £600m for Hammerson, which has been on a drive to sell assets and cut debt as it grapples with plunging retail property rents and values. Shares of Hammerson rose as much as 10.2% on Monday.
While Value Retail’s prized outlet malls that lure millions of international shoppers have been among properties most resilient to the rise of online shopping, Hammerson has long sought an exit of its minority stake in part because of its lack of control over the company. Hammerson chief executive Rita-Rose Gagne said the disposal of its share in Value Retail “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”. The transaction is expected to complete in the second half of this year.
“We have deep experience investing in luxury retail, and we are eager to .