Hammerson sells Silverburn to Henderson Park

Hammerson has announced it has exchanged or completed sales of six non-core assets for total gross cash proceeds of £92m since the half year, including the sale of Glasgow destination Silverburn to Henderson Park and Eurofund, for £140 million.

The 100,000 square meter flagship shopping centre was sold in an off-market transaction from a joint venture between Hammerson and Canada Pension Plan Investment Board.

Hammerson said the other five assets sold, totalling £22m, represent ‘a collection of non-strategic commercial and retail assets’ which were sold at a premium to 30 June 2021 book values.

The proceeds of these disposals will further strengthen Hammerson’s balance sheet by reducing net debt, ahead of reinvestment in flagship assets for growth.

hristophe Kuhbier, managing director of Henderson Park, commented: “Silverburn with its large catchment area close to one of the U.K.’s largest cities has limited direct competition and posted robust footfall levels and cash collection this year. With retail valuations under pressure in recent years, we have been monitoring the UK prime retail market and we see here an excellent opportunity to acquire this asset off-market and invest in a modern asset with immediate upside potential.

“We look forward to investing targeted capital expenditure to maximise the potential of this asset and delivering strong returns to our investors.”

Ian Sandford, chairman of Eurofund Group, which will act as Henderson Park’s operating partner, added: “We are excited by this opportunity to unlock latent value from this exceptional Top 20 UK shopping centre asset which has to date been underperforming. 

“We aim to use our team’s asset management and operational expertise to bring the shopping resort concept and return Silverburn to the offering and performance levels the people of Glasgow deserve and to help it exceed its potential.”

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