British shopping centre giant Hammerson has sold its interest in the company behind Bicester Village in a deal worth £1.5bn, according to a statement released today. The London-listed property firm said it had disposed of its “overweight, non-controlling and yield-dilutive interest” in Value Retail, generating cash proceeds of around £600m, in a move it hoped would ensure a “clean exit from a complex structure at an attractive price”.
Hammerson said it would use the cash generated to reduce its debt and reinvest into assets in its core markets at “higher yields and stronger returns” with a priority on joint venture consolidation and repurposing certain assets. Rita-Rose Gagné, chief executive at Hammerson, said: “This is a transformational deal for Hammerson, generating cash proceeds of c.£600m whilst removing an overweight, low yielding and minority stake, and positioning us for accelerated growth and value creation.
“The disposal focuses our portfolio on prime urban real estate with a transformed capital structure and the capacity and capability to advance our strategy in higher yielding opportunities with stronger returns, whilst enhancing returns to shareholders. “I’m excited about the opportunity this gives us to build on our momentum and track record of the last three years. “We are at a point in the cycle where I can now be on the front foot to capture the exceptional value creation opportunities I see in the near, medium and long term.
This .