Hammerson has officially exchanged unconditional contracts on the portfolio sale of its seven retail park assets to Brookfield for £330m, representing an 8% discount to the 31 December 2020 book value of £357m, marking Hammerson’s exit from the UK retail parks sector.
The portfolio comprises 205,000m² of space across the following retail parks: Central Retail Park (Falkirk); Cleveland Retail Park (Middlesbrough); Cyfarthfa Retail Park (Merthyr Tydfil); Elliott’s Field Shopping Park (Rugby); Telford Forge Shopping Park (Telford); Ravenhead Retail Park (St Helens); and The Orchard Centre (Didcot).
The proceeds of these disposals are aimed at strengthening the balance sheet, reducing net debt, which was £2.2bn at 31 December 2020, and increasing liquidity, which stood at £1.7bn at the same date.
Rita-Rose Gagné, chief executive of Hammerson, said: “As highlighted at the full year results, our immediate priority is to strengthen the balance sheet. This latest disposal is a positive step. Alongside this, we continue to focus on delivering operationally. We have successfully welcomed back our customers in England to our flagship venues, with footfall levels well above the June 2020 reopening, and look forward to reopening our other destinations as local restrictions allow over the coming months.”