Hammerson has sold a shopping centre in Newcastle-upon-Tyne and a land interest in Kingston-upon-Thames for £87m.
It has exchanged contracts to sell Monument Mall in Newcastle to Standard Life Investments UK Property Fund for £75m.
Monument Mall was acquired in 2011 by Hammerson for £28m and in 2013 it completed a reconfiguration of the centre where occupiers include Michael Kors, The White Company, Hugo Boss, Reiss, Jack Wills, Kiehl’s and Rox. The centre’s 15 units totalling 138,000 sq ft are now fully let.
The disposal value, above Hammerson’s 30 June 2015 book value, represents a net initial yield of 4.3% and crystalises a £24m or 46% profit on cost for Hammerson.
Hammerson has also sold a small land interest in Kingston-upon-Thames to St George for £12m.
David Atkins, chief executive at Hammerson, said: “The proceeds from the sale will be used to part fund our recent acquisition of the Jewel portfolio of loans in Dublin. We are on track with further transactions to complete the first tranche of £200m of disposals in Q1 2016.”
