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.”