Hammerson continues its move to retail

Hammerson has continued its move out of the office market, exchanging contracts to sell 75% of its London office schemes to Brookfield Office Properties for £518m.

Assets being sold include the development site at Principal Place in EC2, as well as buildings 99 Bishopsgate, EC2; the 50% stake in 125 Old Broad Street, EC2 and Leadenhall Court, EC3.

Hammerson will use the proceeds of the sale to support its growth in the retail sector.

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.”

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