Hammerson exits retail park sector in £400m deal

Orion European Real Estate Fund buys seven retail parks

Hammerson plc has exchanged unconditional contracts on the sale of a portfolio of seven retail parks to Orion European Real Estate Fund V for £400m – the largest UK retail portfolio in the past decade.

The sale follows Hammerson’s decision, announced in July 2018, to exit the retail parks sector to create a focused portfolio of flagship assets, premium outlets and City Quarters across major European cities.

In total, Hammerson has sold 14 retail parks since July 2018, generating sales proceeds of £764m.

The parks included in the portfolio transaction to Orion 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 Group has an interest in one remaining retail park, Brent South, part of the Brent Cross estate, which is held in a joint venture with Aberdeen Standard Investments and is marked for sale.

David Atkins, Hammerson’s chief executive, said: “Against a challenged retail and investment backdrop we have exited the retail parks sector. Having achieved disposals of close to £1bn since the beginning of 2019, our focus remains on strengthening our balance sheet to create further resilience. The completion of this strategic disposal enables us to create a more concentrated portfolio of flagship venues, premium outlets and City Quarters which we expect will deliver greater levels of both income stability and growth over the medium term.”

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