Hammerson plc has disposed of the Manor Walks Shopping Centre, Cramlington in Northumberland to Arch Commercial Enterprise Ltd for £78 mln (€93 mln).
Located nine miles north of Newcastle, Manor Walks adjoins Westmorland Retail Park, also owned by Hammerson, together comprising Cramlington’s core retail offer.
After acquiring the two schemes in 2006, Hammerson completed a 6,040m² extension of Manor Walks in 2013, adding a Vue multiplex cinema and additional restaurants.
The sale price represents a net initial yield of 7%, and is moderately below book value as at 31 December 2015.
Hammerson will retain ownership of Westmorland Retail Park, with a view to enhancing the tenant mix, after attracting Marks & Spencer Simply Food and TK Maxx in recent years.
Hammerson also announced a separate transaction selling a 4,000m2 property let to The Range in Folkestone for £7 mln, bringing the total value of disposals to £85 mln.
Chief executive David Atkins said: ‘These transactions represent further progress in our disposal programme with £200 mln of our £300 mln target now concluded. Having sold three assets in the last five weeks this clearly indicates that investors continue to recognise the attractive income returns from well-positioned retail property assets.’
According to Hammerson, both transactions were exchanged on terms agreed prior to the EU referendum.
