Shopping centre owner Hammerson has revealed it has sold nine retail parks in deals totalling 拢455m.
The firm, owner of the Bullring in Birmingham, announced to shareholders it has exchanged contracts on the sale of the portfolio to Orion European Real Estate Fund V for 拢400m.
It said the transaction marks the largest sale of its kind in the past decade and follows its decision, announced in July 2018, to exit the retail parks sector and focus on its flagship assets and premium outlets across major European cities.
The deal, expected to bring in net proceeds of 拢395m, sees Orion take over ownership of Central Retail Park in Falkirk, Cleveland Retail Park in Middlesbrough, Cyfarthfa Retail Park in Merthyr Tydfil, Elliott鈥檚 Field Shopping Park in Rugby, Forge Shopping Park in Telford, Ravenhead Retail Park in St Helens and The Orchard Centre in Didcot.
Meanwhile Parc Tawe in Swansea and Abbey Retail Park in Belfast have been sold individually for 拢55m.
It said this final tranche of disposals totals 拢455m and represents a net initial yield of 8.7%.
Hammerson has sold 14 retail parks since July 2018, generating sales proceeds of 拢764m to reduce the group鈥檚 debt and further strengthen the balance sheet.聽
The group has an interest in one remaining retail park, Brent South, part of the Brent Cross estate, which is held in a joint venture with Aberdeen Standard Investments and is marked for sale.
David Atkins, Hammerson鈥檚 chief executive, said: 鈥淎gainst a challenged retail and investment backdrop we have exited the retail parks sector. Having achieved disposals of close to 拢1bn since the beginning of 2019, our focus remains on strengthening our balance sheet to create further resilience.
鈥淭he 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.鈥
Back in 2015 Hammerson sold off one its stars performers, Newcastle鈥檚 luxury shopping centre Monument Mall for 拢75m, making a profit of 拢24m, to Standard Life Investments 海角视频 Property Fund, four years after first buying the property for 拢28m.
