Hammerson has agreed a deal to sell a retail park in Scotland for £67m as it continues its disposal programme to reduce debt.
The sale of Abbotsinch Retail Park, in Paisley, means it has now exceeded its minimum disposal target of £500m in the year. Following the sale of a major stake in its Italie Deux shopping centre in Paris for £423m in July, Hammerson has now made £523m of sales in total.
Hammerson has exchanged contracts to sell the Abbotsinch Retail Park to Ashby Capital at a net initial yield of 7.8%. The price is 3% below book value as at 30 June 2019.
Covering 24,600 sq m, Abbotsinch is located five miles west of Glasgow and is fully let to tenants including B&Q, Dunelm, Tapi and Natuzzi.
Hammerson acquired the site in 2012 for £42m and has added over 8,700 sq m of retail floor space since then through phased developments, at a cost of £17m. As a result of the works, the average rent per square foot rose from £17.78 in 2012 to £20.95 in 2019.
Hammerson chief executive David Atkins said: “Our absolute priority is to reduce debt, and with this deal we have exceeded our target of over £500m in disposals in 2019. 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.”
HMSO : Hammerson exceeds £500m disposal target with sale of retail park