Hammerson sells 50% stake in Highcross shopping centre
Hammerson, the owner of the Highcross shopping centre in Leicester, has sold a 50% share in the mall to an Asian investor.
The deal, worth £236m, creates a new £472m joint venture with the Asian investor introduced by M&G Real Estate. Hammerson will manage the centre.
Highcross is Leicester’s leading retail destination. The 110,000 sq m centre attracts 18 million visitors a year and is anchored by John Lewis & Partners, Debenhams and a Showcase Cinema de Lux.
This transaction takes Hammerson’s total disposals in 2018 to over £530 mm, including the sale of four retail parks earlier this year in line with its plans to exit the retail park sector over the medium term.
David Atkins, chief executive of Hammerson, said: “We have now achieved close to 90% of our increased 2018 disposal target of £600m. This latest transaction is at a price that underpins the underlying strengths of our flagship destinations. It is clear there are institutional investors that continue to have the appetite to buy into top tier centres and see value in creating joint ventures with skilled operators.
“We are taking advantage of the current valuation disconnect with equity markets using proceeds to both buy back our own shares at a significant discount to NAV and reduce leverage, whilst also continuing to selectively invest in higher growth markets. We are single-mindedly focused on shareholder value and will continue to pursue further disposal options that would allow us to achieve prices that reflect the underlying value of the asset.”
John Duxbury, head of retail and Leisure, M&G Real Estate, said: “This is a significant investment into a high quality, strategically located, well-let regional asset, which provides a great place for people to shop, dine out and be entertained.
“The retail sector has its challenges, but prime assets in the right locations will be resilient to the changing retail landscape and continue to deliver attractive risk adjusted returns for our investors. With a strong line up of retail and leisure brands, we are confident that Highcross has an exciting future.”
