The sale is part of a new strategy for Hammerson to specialise in retail property.
The main assets being sold are:
- 99 Bishopsgate, London EC2;
- the 50% stake in 125 Old Broad Street, London EC2;
- Leadenhall Court, London EC3;
- and the development site Principal Place (commercial and residential), London EC2.
Hammerson will use the proceeds for retail developments and acquisitions. It plans to accelerate extension and refurbishment projects in its UK retail parks and smaller retail schemes. Hammerson has identified projects worth £320m that show an average yield on cost in excess of 7.5%, and has recently started construction at Monument Mall, Newcastle, and Manor Walks, Cramlington.
Hammerson will also focus on prime regional shopping centres. It is on site at Les Terrasses du Port,a £400m retail and leisure scheme in Marseille, France, which is on track to open in spring 2014. It is also refurbishing Queensgate in Peterborough.
Premium designer outlets is also a market that Hammerson will focus on.