Major stake in Bicester Village owner sells to LVMH-based private equity

Hammerson, the UK-based owner, operator and developer of urban real estate, has sold its entire stake in Value Retail, which creates and operation of luxury shopping destinations, including its flagship Bicester Village, the UK's most upmarket designer outlet centre.

The buyer is L Catterton – a private equity fund backed by French luxury goods business LVMH and the family office of Bernard Arnault,its majority stakeholder, is buying a stake of about 40 per cent in Value Retail, for £1.5 billion, generating cash proceeds for Hammerson of around £600 million.

Rita-Rose Gagné, CEO, Hammerson plc, said: "This is a transformational deal for Hammerson, generating cash proceeds of around £600 million 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."

Hammerson also owns Cabot Circus in Bristol, which has an annual footfall of 18.8 million, Reading's The Oracle (footfall of just over 13 million) and Westquay in Southampton (annual footfall of 16.8 million), among it's portfolio.

In July, Hammerson announced a flurry of high profile brands moving into Cabot Circus. King Pins Bowl, Six by Nico and Honi Poke will open their doors in Cabot Circus, as it continues to reposition the Bristol city centre destination by introducing new leisure and entertainment uses, high profile brands and regional firsts. 

The addition of King Pins Bowl, which will open a new 16,500 sq ft space in late 2024, will introduce a new family friendly concept to Cabot Circus. A regional first, King Pin Bowl will be a significant addition to the late-night economy in Cabot Circus, adding classic arcade games, pool tables and dart boards, alongside a contemporary bar and food offer. 

The award-winning restaurant concept, Six by Nico, will also open a new 3,200 sq ft restaurant in Cabot Circus’ historical Quakers Friars in early 2025.

London-based poke bowl favourite, Honi Poke, has also signed a new 2,200 sq ft restaurant. This will be the brand’s third site and first outside of the capital. The restaurant will cater to the growing number of people looking for a healthy, grab-and-go dining option in Bristol.

The introduction of a new bowling concept and fine dining restaurant represents a significant investment to improve the customer experience and merchandising at Cabot Circus. It follows the recent announcement that Hammerson is bringing M&S back to Bristol city centre with an 80,000 sq ft flagship store at Cabot Circus and the other recent high-profile openings and signings including Inditex-owned Stradivarius, Treetop Golf and athleisure headwear brand, Lids. Last year H&M opened the first ever H&M Home in Bristol, a regional first.