Hammerson plc (“Hammerson”) has exchanged contracts and completed the sale of Thurrock Shopping Park, Essex, to TH Real Estate for £93 million.
The park comprises two retail schemes with net internal area of 25,500m2 and is situated next to junction 31 of the M25. Tenants include M&S, Gap, Pets at Home, Decathlon, Boots, Evans Cycles and Dunelm. Hammerson purchased the property for £64 million in 2012 as part of the Junction Fund Portfolio. Since then we have deployed £3 million of capital expenditure to redevelop the cinema site into three new retail units, upgraded the tenant line-up to a more fashion-led retail mix, including securing the UK’s first Nike Outlet on a retail park and achieved planning consent on the development site.
The ownership of a 26 acre site is being retained for development by Hammerson with planning consent for 320 residential units over 18 acres and 7,600m2 of retail and leisure.
The sale price represents a net initial yield of 5.3% and is moderately below the book value as at 31 December 2015.
David Atkins commented:
“I am pleased to announce a further step in our £300m disposal programme which highlights our continued focus on rotating Hammerson’s retail platform towards our higher growth assets. Thurrock has shown excellent returns during our ownership and this transaction provides a good opportunity to crystallise a £26m profit on cost with further upside expected from the retained development opportunity.”