20th Jun 2016 06:23
LONDON (Alliance News) - Property developer Hammerson PLC on Monday said it has sold its Thurrock Shopping Park in Essex to investment manager TIAA Henderson Real Estate Ltd for GBP93.0 million, as part of its GBP300.0 million disposal programme.
Hammerson said the sale price represents a net initial yield of 5.3% and is "moderately" below the book value as at December 31.
The shopping park, north east of London, comprises of two retail schemes, with a net internal area of 25,500 square metres, Hammerson said, with tenants including food, clothing and homewares retailer Marks & Spencer Group PLC, Gap Inc and pet supply retailer Pets At Home Group PLC.
Hammerson purchased the property in 2012 for GBP64.0 million as part of the Junction Fund Portfolio and has since deployed GBP3.0 million of capital expenditure to redevelop the cinema site into three new retail units, upgraded the tenant line-up to a more fashion-led retail mix, and achieved planning consent on the development site, it said.
The ownership of a 26 acre site is being retained for development by Hammerson with planning consent for 320 residential units over 18 acres and 7,600m2 of retail and leisure, the company added.
"I am pleased to announce a further step in our GBP300.0 million disposal programme which highlights our continued focus on rotating Hammerson's retail platform towards our higher growth assets. Thurrock has shown excellent returns during our ownership and this transaction provides a good opportunity to crystallise a GBP26.0 million profit on cost with further upside expected from the retained development opportunity," said Chief Executive David Atkins.
By Hannah Boland; [email protected]; @Hannaheboland
Copyright 2016 Alliance News Limited. All Rights Reserved.
Related Shares:
Hammerson