UK real estate investment trust Hammerson has sold a £54m (€63m) retail park in the west of England to an unnamed local authority.

Hammerson said the 20,900sqm St Oswald’s Retail Park in Gloucester was sold at a net initial yield of 8.5% and is 8% below the 30 June 2019 book value.

Hammerson originally developed the site in 2005 and has since increased the overall number of units on the park to improve the brand mix.

Following this transaction, Hammerson said it has achieved £577m of disposals in 2019, exceeding its minimum disposal target, of in excess of £500m, for the financial year.

David Atkins, Hammerson CEO, said: “Despite a challenging investment market, we are successfully executing disposals in line with our priority to reduce debt and strengthen our balance sheet.

“These transactions also give us the flexibility to capitalise on the opportunities we see in the market, particularly with regards to our City Quarters pipeline, which is core to the future direction and success of our business.”