LONDON — Hammerson, the British real estate developer and owner of major shopping malls across Europe, on Monday said it has agreed to sell its 42 percent stake in Value Retail, the parent company of The Bicester Collection, to Silver Bidco Ltd., an investment vehicle controlled by L Catterton, the private equity fund backed by LVMH Mo?t Hennessy Louis Vuitton.

The deal gives the business an enterprise value of 1.5 billion pounds, or $1.94 billion, and generates cash proceeds of 600 million pounds, or $775 million.

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Hammerson said the deal will ensure a clean exit from an “overweight, low yielding” structure at an attractive price. Its stake in Value Retail generated a five-year average cash yield of 2 percent. In comparison, the exit plan represents a yield of 3.4 percent, a 24 percent drop in gross asset value, and crystallizing a 10-year internal rate of return of 13 percent.

The developer said it intends to use the proceeds to reduce net debt and reinvest in assets in core markets at higher yields and stronger returns. It also plans to use the sums to buy back up to 140 million pounds worth of its shares, representing 10 percent of Hammerson’s current market capitalization.

The exit from Value Retail, seen as in the best interests of shareholders by the board of Hammerson, signals Hammerson’s latest effort to focus on prime urban shopping destinations, where local consumers contribute a higher-yielding revenue stream. In contrast, some suburban outlets in the U.K. like Bicester Village have been unable to attract as many international tourists as before due to the absence of VAT-free shopping in the U.K.

Calling it “a transformational deal,” Rita-Rose Gagné, chief executive officer at Hammerson, added: “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.”

That said, Hammerson does acknowledge that it will have greater concentration risks associated with the property markets of the U.K., France and Ireland, where it owns Brent Cross in London, Bullring & Grand Central in Birmingham, Dundrum Town Centre in Dublin and Les Terrasses du Port in Marseille, among others.