Hammerson offloads 7 retail parks for 400 million pounds

British property group Hammerson has offloaded seven retail parks to private equity firm Orion for 400 million pounds in an effort to cut its debt.

The group, which owns Bullring shopping centre in Birmingham, said the decision comes as part of its strategy to exit the retail parks sector over the medium term “to create a focused portfolio of flagship assets, premium outlets and City Quarters across major European cities.”

The sites included in the portfolio transaction are Central Retail Park in Falkirk, Cleveland Retail Park in Middlesbrough, Cyfarthfa Retail Park in Merthyr Tydfil, Elliott’s Field Shopping Park in Rugby, Forge Shopping Park in Telford, Ravenhead Retail Park in St Helens, and The Orchard Centre in Didcot.

Since July 2018, Hammerson has sold 14 retail parks, generating sales proceeds of 764 million pounds to reduce its debt and strengthen its balance sheet. It said it is also interested in selling one remaining retail park, Brent South, which is part of the Brent Cross estate and is held in a joint venture with Aberdeen Standard Investments.

Separately, the group said it sold Parc Tawe in Swansea and Abbey Retail Park in Belfast individually, generating proceeds of 55 million pounds.

David Atkins, Hammerson’s chief executive, said in a statement: “Against a challenged retail and investment backdrop we have exited the retail parks sector. Having achieved disposals of close to 1 billion pounds 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.”

Image: Bullring Birmingham, courtesy of Hammerson