Hammerson is selling two UK retail assets to clients of BMO Real Estate Partners.
The UK listed real estate investment trust said it had exchanged contracts to sell the Westwood and Westwood Gateway Retail Parks in Kent for £80m (€91.7m).
The sale price represents a net initial yield of 6.5% and is slightly below the December 2016 book value.
The retail parks, covering 24,900 sqm, are let to tenants including Homebase, Wren, Tapi, SCS and Dunelm.
David Atkins, chief executive of Hammerson, said: “We continue to actively manage our retail park portfolio, realising proceeds to recycle into higher growth opportunities.”
Hammerson bought Westwood Retail Park in 2002 and repositioned the asset through extensions. The adjacent Westwood Gateway site, built in 2005, was extended in 2009 and 2016.
Since the acquisition, over 15,000 sqm of new floor space has been added and rental income has increased by over 200%.
Atkins said Hammerson is progressing with its planned disposal programme for the year and “remains committed to reducing leverage ahead of progressing with our development pipeline”.
