21st Feb 2020 07:20
(Alliance News) -Â Hammerson PLC on Friday said it has sold a portfolio of seven retail parks in the UK for GBP400 million, and separately disposed of two other locations.
The sale of the portfolio, to Orion European Real Estate Fund V, is expected to generate net proceeds for Hammerson of GBP395 million. It includes retail parks such as the Forge Shopping Park in Telford and Cleveland Retail Park in Middlesbrough.
The total sale price of the portfolio represents a net initial yield of 8.9% and is 23% below the last reported book value as at June 30.
"This transaction is the largest UK retail parks portfolio sale in the past decade. The sale follows Hammerson's strategic decision, announced in July 2018, to exit the retail parks sector over the medium term to create a focused portfolio of flagship assets, premium outlets and City Quarters across major European cities," the retail property investor said.
Separately, Hammerson said it sold Parc Tawe in Swansea and Abbey Retail Park in Belfast individually, generating proceeds of GBP55 million.
Since July 2018, it has sold 14 retail parks, generating GBP764 million to reduce debt and strengthen its balance sheet. Hammerson has an interest in one remaining retail park, Brent South, part of the Brent Cross estate, which is held in a joint venture with Aberdeen Standard Investments and is marked for sale.
Hammerson Chief Executive David Atkins said: "Against a challenged retail and investment backdrop we have exited the retail parks sector. Having achieved disposals of close to GBP1 billion since the beginning of 2019, our focus remains on strengthening our balance sheet to create further resilience. The completion of this strategic disposal enables us to create a more concentrated portfolio of flagship venues, premium outlets and City Quarters which we expect will deliver greater levels of both income stability and growth over the medium term."
By Lucy Heming;Â [email protected]
Copyright 2020 Alliance News Limited. All Rights Reserved.
Related Shares:
Hammerson