AXA IM Real Assets acquires major stake in Italie Deux for €473m

AXA IM Real Assets acquires major stake in Italie Deux for €473m
Italie Deux

AXA IM – Real Assets, acting on behalf of clients, has agreed to acquire a 75% stake in the Italie Deux shopping centre in central Paris for €473 million (£423m), from Hammerson in a new joint venture.  

At 61,800 sqm and comprising c. 130 units spread over the basement, ground and one upper floor, Italie Deux is the second largest shopping centre in Paris and a dominant retail and leisure destination in the French capital’s 13th arrondissement.

With over 12 million visitors per year from a large affluent catchment, Italie Deux’s footfall grew 5.4% in 2018.  Having been fully renovated in 2013, the asset also benefits from its central position in part of a larger complex, under separate ownership, that comprises a hotel, offices and residential buildings.  

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Producing annual sales of around €310 million, Italie Deux is anchored by a number of strong retail brands as well as leisure and entertainment attractions including a variety of popular food and beverage units and a 4,500 sqm 1,000 seat theatre. An extension of the centre known as Italik, which will extend its retail offering on to avenue d’Italie, is currently being progressed and is due to complete in spring 2020, adding 6,400 sqm of new GLA across 12 new retail, catering and leisure units, which are already 41% pre let, together with a coworking facility, as well as creating an attractive new façade for the existing centre. 

”Our number one priority is to reduce debt and build balance sheet strength. This transaction means we have reached over 90% of our 2019 disposal target. We are in advanced negotiations on additional asset sales and the creation of this joint venture once again highlights the appetite for investors to partner with skilled sector specialists,” said David Atkins, Hammerson Chief Executive.

”This transaction provides us with a fantastic opportunity to secure access, on behalf of clients, to a prime central Paris retail destination. Italie Deux is a major, well anchored shopping centre with an attractive catchment and strong track record of performance located in a key global city,” said John O’Driscoll, European Head of Transactions at AXA IM – Real Assets.