Hammerson has continued its non-core asset sell off with the disposal of six properties for £92m. The group said the sales were in line with its strategy of reducing debt, simplifying the portfolio and generating capital for redeployment.
It has exchanged contracts to sell its 50% stake in Silverburn, a 100,000 sqm shopping centre near Glasgow, to entities affiliated with Henderson Park and Eurofund for £140m (Hammerson share £70m). This represents a 4% discount to 30 June 2021 book value of £147m, and a net initial yield of 9.3%. The transaction is expected to complete in the first quarter of 2022, and a deposit of £40m is currently being held in escrow.
The other five assets sold total £22m and represent a collection of non-strategic commercial and retail assets which were sold at a premium to 30 June 2021 book values.
The group said the proceeds of these disposals will be used to strengthen the balance sheet by reducing net debt, ahead of reinvestment in flagship assets for growth.
Together with minority stake disposals of French and UK assets (£73m) and the UK Retail Parks portfolio (£330m) sold in the first half of the year, the transactions announced today take Hammerson’s total gross proceeds from sales in 2021 to £495m.
HMSO : Hammerson disposes of £92m non-core assets