Hammerson PLC has taken care of the sale of a portfolio of seven retail parks to Orion European Real Estate Fund V for a value of £400m that is expected to net £395m. This is the largest UK retail parks portfolio sale in the past decade that follows since the company’s decision to remove its retail parks sector to focus its portfolio of flagship assets that include premium outlets and City Quarter along major European cities.
Swansea, Parc Tawe and Abbey Retail Park, Belfast have been sold individually that have generated a total of £55m. The total proceeds from the sales total £455m to date. Hammerson has sold a total of 14 retail parks since July 2018. Total proceeds of the sales since then amounted to £764m in order to reduce the company’s debt and strengthen its balance sheet. One remaining retail park, Brent South, held in a joint venture with Aberdeen Standard Investments is marked for sale.
David Atkins, Hammerson’s Chief Executive, said: “Against a challenged retail and investment backdrop we have exited the retail parks sector. Having achieved disposals of close to £1bn 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.”