Disposal of Thurrock Shopping Park

RNS Number : 6188B

Hammerson PLC

20 June 2016

 

Hammerson plc

Disposal

20 June 2016

Disposal of Thurrock Shopping Park, Essex

Hammerson plc ("Hammerson") has exchanged contracts and completed the sale of Thurrock Shopping Park, Essex, to TH Real Estate for £93 million.

The park comprises two retail schemes with net internal area of 25,500m² and is situated next to junction 31 of the M25. Tenants include M&S, Gap, Pets at Home, Decathlon, Boots, Evans Cycles and Dunelm. Hammerson purchased the property for £64 million in 2012 as part of the Junction Fund Portfolio. Since then we have deployed £3 million of capital expenditure to redevelop the cinema site into three new retail units, upgraded the tenant line-up to a more fashion-led retail mix, including securing the UK's first Nike Outlet on a retail park and achieved planning consent on the development site.

The ownership of a 26 acre site is being retained for development by Hammerson with planning consent for 320 residential units over 18 acres and 7,600m2 of retail and leisure.

The sale price represents a net initial yield of 5.3% and is moderately below the book value as at 31 December 2015.

David Atkins commented:

"I am pleased to announce a further step in our £300m disposal programme which highlights our continued focus on rotating Hammerson's retail platform towards our higher growth assets. Thurrock has shown excellent returns during our ownership and this transaction provides a good opportunity to crystallise a £26m profit on cost with further upside expected from the retained development opportunity."

For further information:

David Atkins, CEO

020 7887 1000

Rebecca Patton, Head of Investor Relations

020 7887 1109

Catrin Sharp, Head of Corporate Communications     

020 7887 1063

Notes to Editors

About Hammerson

Hammerson is a FTSE 100 owner, manager and developer of retail destinations in Europe. Our portfolio of high-quality retail property has a value of around £9.1 billion and includes 20 prime shopping centres, 21 convenient retail parks and investments in 15 premium outlet villages, through our partnership with Value Retail and the VIA Outlets joint venture. Key investments include Bullring, Birmingham, Bicester Village, Kildare Village and Les Terrasses du Port, Marseille. 

 

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