JSE-listed Hammerson has sold its half of UK shopping mall Highcross for £236m, it announced on Monday.
Hammerson CEO David Atkins said the deal brought the group close to its target of raising £600m via disposals during 2018. The selling price was 5% less than Highcross's reported book value at December 2017. The shopping mall's tenants included collapsed UK retail chain House of Fraser.
The group took the decision to sell shopping malls in the UK while investing in Ireland and continental Europe to mitigate the risks introduced by Brexit.
"The deal creates a new £472m joint venture with an Asian investor introduced by M&G Real Estate. Hammerson will manage the centre for the new joint venture and the sale price represents a net initial yield of 5.5%," Hammerson said in a statement.
"Highcross is Leicester’s leading retail destination. The 110,000m² centre attracts 18-million visitors a year and is anchored by John Lewis & Partners, Debenhams and a Showcase Cinema de Lux. The centre continues to experience strong demand from retailers, with luxury perfume brand Jo Malone London recently opening its first boutique in the city."
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