US and Canadian-listed investor Brookfield Office Properties has acquired the bulk of Hammerson's London office portfolio for £518 mln (EUR 644 mln). The gross proceeds are 5% above proforma book value and represent a 5.2% initial yield, Hammerson said.
US and Canadian-listed investor Brookfield Office Properties has acquired the bulk of Hammerson's London office portfolio for £518 mln (EUR 644 mln). The gross proceeds are 5% above proforma book value and represent a 5.2% initial yield, Hammerson said.
Hammerson, one of the largest real estate investment trusts in the UK, said the transaction involved six assets, or 75% of the London office portfolio. The main assets being sold are: 99 Bishopsgate; the 50% stake in 125 Old Broad Street; Leadenhall Court; and the development site Principal Place (commercial and residential).
The UK REIT announced earlier this year that it planned to focus exclusively on the retail sector. Following the office transaction it's proforma portfolio consists almost entirely (97%) of retail assets.
Hammerson CEO David Atkins 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 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,' he added.
