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Hammerson sells Monument Mall, Newcastle for £75m

Hammerson has announced that it has exchanged contracts for the sale of two assets for a total of £87m. This includes its wholly owned shopping centre Monument Mall in Newcastle-upon-Tyne (pictured), which is being sold to Standard Life Investments UK Property Fund for gross proceeds of £75m.

Monument Mall was acquired in 2011 for £28m and completed a reconfiguration of the centre in 2013. Following this, the centre secured a number of high-end retail and leisure brands such as Michael Kors, The White Company, Hugo Boss, Reiss, Jack Wills, Kiehl’s and Rox, alongside the existing brands including TK Maxx and Sports Direct. Hammerson says that the centre is now fully-let with 15 units covering 138,000 sq ft. They say that the disposal value is above the 30 June 2015 book value representing a net initial yield of 4.3% and crystallises a £24 million (46%) profit on cost for Hammerson.

Hammerson has also sold a small land interest in Kingston-upon-Thames to St George for £12m.

The proceeds of the sale are to be used to part fund the company’s recent acquisition of the Jewel portfolio of loans in Dublin. The company says that they are on track with further transactions to complete the first tranche of £200m of disposals in Q1 2016.”

Hammerson sells Monument Mall, Newcastle for £75m : HMSO

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