Hammerson has increased its ownership of north London shopping centre Brent Cross, with a £186m acquisition of abrdn UK Shopping Centre Trust (SCUT) stake.
It has bought 95% of the units in SCUT, which holds the 59% of Brent Cross not already held by Hammerson, at a 16% discount to book value as at 31 December 2024 and a net initial yield of 8.6%.
Combined with Hammerson’s existing managing stake, the company’s economic interest in Brent Cross is currently 97%, and will provide an annualised EBITDA benefit of around £14m.
Hammerson has also made an open offer to acquire all remaining SCUT units on the same terms as those already acquired.
Together with the acquisition of Westquay in November 2024, this transaction means that since the sale of Value Retail at an exit cash yield of 3.4%, it has redeployed £321m at an average yield of 8.5%, and adding £25m of annualised EBITDA.
The group said that it continues its programme of repositionings and acquisitions. Following the disposal of non-core land at Leeds Eastgate in April for £26m, a 23% premium to book value, it said that it may look to realise further value from some of the development portfolio.
Rita-Rose Gagne, chief executive, commented: “Brent Cross is an iconic destination with a loyal and strong catchment. The acquisition substantially consolidates our control and economic interest in line with our strategy to recycle capital into our landmark assets at higher yields and more attractive risk-adjusted returns.”
