UK real estate investment trust Hammerson announced on Tuesday that it is buying the Victoria Quarter in the UK city of Leeds for £136 mln (EUR 170 mln). The vendor is Kennedy Wilson, acting on behalf of Bank of Ireland Private Banking.
UK real estate investment trust Hammerson announced on Tuesday that it is buying the Victoria Quarter in the UK city of Leeds for £136 mln (EUR 170 mln). The vendor is Kennedy Wilson, acting on behalf of Bank of Ireland Private Banking.
Including costs, the deal reflects an initial yield of 5.25%.
Hammerson said the acquisition reinforces its presence in Leeds and the luxury retail sector. Earlier this year, the company said it was pulling out of offices to focus on retail. It sold the bulk of its London office portfolio to US group Brookfield Office Properties for total cash proceeds of £518 mln (EUR 660 mln).
Victoria Quarter is a luxury retail destination in the heart of Leeds. Comprising 19,500m2, it is anchored by a Harvey Nichols store and houses over 70 shops and two cafés.
The acquisition complements Hammerson’s proposals for the first phase of Eastgate Quarters, which is adjacent to the Victoria Quarter, enabling a coordinated approach to its tenant strategy and marketing in Leeds.
Victoria Quarter is 100% let and the passing rent is currently £7.2 mln.
David Atkins, CEO of Hammerson, commented: 'Our purchase of the Victoria Quarter is a further demonstration of our commitment to Leeds, following the announcement of our plans for Eastgate Quarters in July. Victoria Quarter is a retail landmark in Leeds, and our ownership of the scheme will help us to develop a comprehensive retail offer for Eastgate Quarters and expand the luxury and aspirational retail offer for the city.'
Hammerson was advised on the transaction by DTZ, Strutt & Parker and Nabarro. Kennedy Wilson was advised by CBRE and Trowers & Hamlins.
