Hammerson Snaps Up Westquay At Under Half Price It Sold Stake
Hammerson has become the third major UK REIT to acquire or divest a joint venture in a shopping centre in the past few months, after completing the acquisition of the remaining 50% stake in the Westquay shopping centre in Southampton.
It bought the holding from GIC for £135M, giving the company complete ownership of the retail and leisure scheme.
Hammerson had originally sold the stake to the Singaporean sovereign wealth fund in 2007 for circa £299M and is therefore buying back the shared ownership at less than half the selling price.
The move follows the decisions by British Land to divest its 50% holding in Meadowhall, Sheffield in May and Landsec’s ongoing stake building in Bluewater, Kent with the latest stake raise in June.
In the case of Hammerson, the consideration will be funded by the proceeds received from its recent disposal of its stake in designer outlet group Value Retail, and the deal comes at a time when it had largely been a seller of retail assets, most recently Union Square, Aberdeen, to Lone Star for £110M.
“This transaction is in line with our stated strategy. Combined with our recently enhanced funding position and disciplined approach to capital allocation, we are well placed to deliver growth and value creation,” Hammerson CEO Rita-Rose Gagne said in a statement.
In June, Landsec completed the acquisition of an additional 17.5% stake in Bluewater from GIC for £120M, increasing its total ownership in one of the UK’s leading retail destinations to 66.25%. The transaction was part of Landsec’s objective to grow its investment in major retail destinations, recycling capital from noncore disposals in an earnings-accretive way, the REIT said at the time.
Meanwhile, in May, British Land exchanged contracts for the sale of its 50% stake in Meadowhall Shopping Centre to its partner Norges Bank Investment Management for £360M. The move was in line with its strategy to focus on retail parks and reduce exposure to covered shopping centres, British Land said.
