Hammerson has sold its stake in Retail Value for luxury market investor, L Catterton, for £1.5bn.

The firm said that the sale of the almost 40% stake in Retail Value, which controls Bicester Village as well as a number of shopping centres across Europe, would raise £600m in cash proceeds and plans to use this to pay down debt, invest in other centres and return £140m to shareholders.

L Catterton is a private equity firm that is part-owned by LVMH, which owns brands including Christian Dior and Louis Vuitton.

Chief executive officer at Hammerson, Rita-Rose Gagne, said: "This is a transformational deal for Hammerson, generating cash proceeds of c.£600m 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."

Global co-CEO at L Catterton, Michael Chu, added: "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."

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