30th Sep 2019 10:28
(Alliance News) - Property developer Hammerson PLC said Monday it sold its retail park in the Scottish town of Paisley for GBP67 million to Ashby Capital, a discount to its current holding value.
FTSE 250-listed Hammerson will sell the 24,600 square metre park to Ashby on a net initial yield of 7.8% and at a 3% discount to its book value as of the end of June. The properties are let to a number of clients, including Kingfisher PLC-owned B&Q and Dunelm Group PLC.
The property was acquired in 2012 for GBP42 million, with Hammerson subsequently investing GBP17 million to expand it by a further 8,700 square metres.
Following the sale, Hammerson has now exceeded its asset disposal target of GBP500 million in 2019. In total, the firm has sold properties worth a combined GBP523 million this year.
"Our absolute priority is to reduce debt, and with this deal we have exceeded our target of over GBP500 million in disposals in 2019," Hammerson Chief Executive Officer David Atkins said. "We continue to progress negotiations on additional assets across the portfolio."
"Disposals enable us to prove the value of this business and strengthen our balance sheet, and also give us the flexibility to benefit from the opportunities that will arise in the coming years, particularly with regards to our City Quarters pipeline", Atkins added.
Shares in Hammerson were 1.4% lower at 280.00 pence in London on Monday, down 1.5% at ZAR52.19 in Johannesburg.
By Ahren Lester; [email protected]
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