UK property firm Hammerson to own Leicester shopping centre

By Karolin Schaps

LONDON, (Reuters) – British property firm Hammerson is selling up to 71.3 million new shares to fund the purchase of its joint venture partner's stake in a shopping centre in Leicester, central England, and a planned expansion in outlet fashion centres.

The shopping centre landlord said it had signed an agreement to buy the outstanding 40 percent stake in the 114-store Highcross centre in Leicester  for 280 million pounds ($457 million) from the former Royal Mail pension plan.

The centre generates a rent of 27.8 million pounds and adds to Hammerson's shopping centre portfolio, which includes Birmingham's Bullring and Brent Cross in north London.

The company also said it was investing 100 million pounds to expand its involvement in Europe's fashion outlet centres, which offer top-name brands at discount prices.

It is investing 70 million pounds in VIA Outlets, which has acquired interests in outlets in major European cities including Amsterdam and Prague.

And it is providing 30 million pounds to Value Retail to help fund extensions at Bicester Village and Kildare Village outlet centres in Britain and Ireland, as well as the opening of a Value Retail village in Shanghai in 2015.