Hammerson plc (“Hammerson”) has exchanged contracts for the sale of Westmorland Retail Park, Cramlington in Northumberland to Arch Commercial Enterprise Ltd (“Arch”) for £36 million.
Arch also acquired the adjacent Manor Walks Shopping Centre in July 2016 from Hammerson. The two schemes form the core retail offer for Cramlington town centre and ownership of both enables Arch to effectively manage the complementary retail offers.
Hammerson acquired the asset in 2006 and has refurbished and extended the scheme to create a refreshed retail terrace, attracting a number of new high-street brands including Currys PC World, TK Maxx, Costa and M&S Food.
The sale price for Westmorland represents a net initial yield of 5.8%, and is moderately below book value as at 30 June 2016.
Additional recent smaller transactions take the total proceeds received to £43 million.
David Atkins, CEO Hammerson, commented: “It is encouraging to see continued interest in well-positioned retail park assets at supportive pricing levels. Arch is a natural owner of the asset having already invested in the adjacent shopping centre, and our strategy of introducing high street brands to this asset has created a strong offering for the local catchment.”