Hammerson, a major property company in the UK, has successfully sold its Victoria Gate and Victoria Quarter shopping centers in Leeds. The sale, which was confirmed just a week ago after initial negotiations, has now been finalized with Redical Holdings purchasing the properties for £120 million in cash. Hammerson has stated that this sale price aligns with the book value as of June 30, 2021, and represents a net initial yield of 7.4%. The funds generated from the sale will be used to reduce Hammerson’s net debt.
The assets included in this sale are the Victoria Quarter shopping gallery, which spans 19,400 square meters, the Victoria Gate shopping center, which covers 37,600 square meters, and the connecting Wrays Buildings. Victoria Gate, which was opened by Hammerson in 2016 with an investment of £165 million, has been regarded as a transformative addition to the city of Leeds. The shopping center is anchored by renowned department store John Lewis and features a wide range of fashion and beauty brands such as Ted Baker, Paul Smith, Kurt Geiger, Space NK, Kiehl’s, L’Occitane, and Jo Malone. Redical Holdings reportedly views the acquisition of Victoria Leeds as a valuable long-term investment and intends to prioritize the maintenance and upkeep of the development’s quality.
This sale is part of Hammerson’s strategic plan to shift its focus towards prime urban estates and divest non-core assets. The company, known for owning prominent shopping centers like the Bullring and Grand Central in Birmingham and the Bicester Village Designer Outlet in Oxfordshire, is aiming to strengthen its balance sheet following a challenging period caused by the pandemic and subsequent lockdowns, which significantly impacted the commercial property sector.
In addition to the sale of Victoria Leeds, Hammerson has also recently announced the sale of its share in Silverburn, a sizable shopping center near Glasgow spanning 100,000 square meters. The 50/50 joint venture has been sold to Henderson Park and Eurofund for £140 million in cash. These recent sales exemplify Hammerson’s dedication to optimizing its portfolio and concentrating on its core assets to ensure long-term growth and stability.
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For further details regarding Hammerson’s strategy and recent sales, please visit examplelink2.
