UK REIT Hammerson is in talks to sell its 40% stake in Value Retail, a luxury shopping outlet owner and operator, for a volume in the region of £1 bn (€1 bn) according to sources close to the firm.
The price would reflect a considerable discount on recent years - the stake was valued at close to £2 bn in 2019 in Hammerson's interim results. Media reports suggest that the stake is now worth in the region of £1.2 bn, but Hammerson might be prepared to cut the price tag for a quick sale.
UK-based Value Retail develops and owns designer outlets. Its 12-asset portfolio includes Bicester Village in the UK, another eight European outlet malls, plus two outlets in Shanghai and Suzhou in China. There is also an outlet village under development in New York, Belmont Park Village, due to open in the summer of 2024.
In a media statement, Hammerson said: 'Value Retail is an attractive portfolio but, as we've previously stated, it's not part of our core proposition to have an investment in a platform.
'We are not forced sellers and will look to maximise our options at the right time.'
Hammerson has been reevaluating its retail exposure in recent months, having sold its 50% stake in a Croydon shopping centre redevelopment to Unibail-Rodamco-Westfield at the end of April.
