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Hammerson Retail Park Sale Collapses

Havryes Bensons For Beds retail park Imran Khan Photography  Shutterstockdotcom.jpg

Last month, Hammerson PLC confirmed that the planned £400m sale of its seven retail parks had been delayed by the buyer.

The seven asset portfolio of UK retail parks comprises 205,000m² of space which generates a net rental income of £36m per annum.

The parks included in the portfolio transaction are:

  • Central Retail Park (Falkirk)
  • Cleveland Retail Park (Middlesbrough)
  • Cyfarthfa Retail Park (Merthyr Tydfil)
  • Elliott’s Field Shopping Park (Rugby)
  • Forge Shopping Park (Telford)
  • Ravenhead Retail Park (St Helens)
  • The Orchard Centre (Didcot)

The total sale price of the portfolio transaction represents a net initial yield of 8.9% and is 22.8% below the last reported book value as at 30 June 2019. The headline price of £400m is subject to an adjustment for rent free periods and rental guarantees and as a result the transaction is expected to generate net proceeds of £395m.

Hammerson made the following statement today:

On 23 April 2020, Hammerson plc ("Hammerson") announced that Orion European Real Estate Fund V ("Orion") had notified the company that it did not intend to complete on the sale of a portfolio of seven retail parks (the "Transaction"), despite exchanging unconditional contracts on 20 February 2020.

In accordance with the terms of the SPA, Hammerson served notice to complete on Orion specifying that completion must occur by no later than 6 May 2020. Following close of business on 5 May 2020, Orion notified Hammerson that it had resolved not to complete on the 6 May 2020. Hammerson will now terminate the SPA and access the £21 million deposit which has been held in escrow by its solicitors.

Source : Hammerson

Image : Imran Khan Photography / Shutterstock.com

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06 May 2020

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