Hammerson sells assets to become retail specialist

Property firm Hammerson has exchanged contacts for

the sale of the majority of its office portfolio as it pursues its intentions to become a specialist retail property company, as part of its strategic review announced earlier this year.

Its London office assets are being sold to Brookfield Office Properties and will generate Hammerson proceeds of £518m, which the company has stated will be used to increase its investment in retail developments and acquisitions.

Once the deal has been completed Hammerson’s portfolio will be 97 per cent retail and it plans to invest in prime regional shopping centres such as the refurbishment of the Queensgate shopping centre in Peterborough, and the £400m Les Terrasses du Port retail and leisure development in Marseille, which is on track to open in spring 2014.

Hammerson is also planning to accelerate extension and refurbishment projects in its UK retail parks and smaller retail schemes including the Monument Mall in Newcastle and Manor Walks in Cramlington, both of which are currently in construction.

In addition, the company has highlighted its intentions to invest in Value Retail business, which owns premier outlet villages in nine of Europe’s main cities including Bicester Village here in the UK. Having secured an additional stake in December 2011, Hammerson said it has retained a close dialogue with the management team and believes there will be opportunities for further future investment.

David Atkins, Chief Executive of Hammerson said: “In our strategic review announced earlier this year we identified the opportunity to enhance returns by focusing our energy and capital on the successful sectors of retail which cater to consumers’ increasing desire for experience, convenience and value.

“I’m delighted that we have been able to achieve our goal of becoming a pure retail business earlier than anticipated by arranging a single transaction for the majority of our London offices which secures excellent value for shareholders.

“I am confident that at this point in the cycle we can reinvest successfully to increase scale in our three chosen areas of prime shopping centres, convenient retail parks and premium designer outlets.”