Shopping centre developer Hammerson has reached an agreement to purchase Intu Properties for £3.4 billion.

Both companies said the deal would create a £21bn pan-European portfolio of retail and leisure destinations, enhancing the enlarged Group's position in its geographic markets and across its retail formats.

In addition, at least £2bn of the property portfolio will be disposed of to strengthen the new Group's balance sheet and provide liquidity to reinvest in higher return opportunities.


Under the deal, the Group will be led by Chief Executive Officer, David Atkins, and Chief Financial Officer, Timon Drakesmith.

David Tyler, Chairman of Hammerson, said: "This transaction will deliver real value for shareholders. The financial strength of the Enlarged Group and its strong leadership team will make it well-placed to take advantage of higher growth opportunities on a pan-European scale."

John Strachan, Chairman of Intu and proposed Senior Independent Director of the Enlarged Group, said: "A combination of both Intu and Hammerson will create a more resilient, diversified and stronger group that we believe will benefit all our stakeholders.

"Intu offers high-quality retail and leisure destinations in the UK and Spain, which when merged with Hammerson's own top-quality assets in the UK, in France and in Ireland, present a highly attractive proposition for retailers and shoppers in Europe's leading cities."

(LM/MH)