21st Dec 2015 07:56
LONDON (Alliance News) - Hammerson PLC on Monday said it has received gross proceeds of GBP75.0 million after exchanging contracts to sell two of its assets, providing the property investment company with a healthy profit.
Hammerson plans to sell the Monument Mall in Newcastle-upon-Tyne and a small land interest in Kingston-upon-Thames to Standard Life Investments UK Property Fund.
Hammerson originally paid GBP28.0 million for Monument Mall back in 2011 and reconfigured the shopping centre to secure a number of high-end clients. The mall is currently fully let and has units covering 138,000 square feet of floor space.
The company said the value of the sale is above the book value of the property at the end of June, representing a net initial yield of 4.3% and generating a GBP24.0 million profit on cost for Hammerson.
It has also sold a small land interest in Kingston-upon-Thames for GBP12.0 million.
"Monument Mall is a great example of how Hammerson uses its development and asset management skills to transform retail venues and deliver strong returns to shareholders. The proceeds from the sale will be used to part fund our recent acquisition of the Jewel portfolio of loans in Dublin," said Hammerson.
By Joshua Warner; [email protected]; @JoshAlliance
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