Hammerson is swooping to buy out its joint venture partner on Leicester shopping centre Highcross after missing out on a stake in flagship mall Bluewater.
The retail REIT, which owns 60% of the centre, has decided against selling a 10% holding alongside LaSalle Investment Management, which is seeking to sell its 40% holding. Instead, it is set to take full control of the prime regional shopping centre.
Sources said Hammerson was under pressure to spend after losing out on a 30% stake in Bluewater, Kent, to Land Securities, which paid a knock-out £700m for the property. Oversubscribed bond issues, private placements and proceeds from a number of sales means the REIT has liquidity of £980m, according to its latest results.
Hammerson and LIM instructed CBRE to sell a 50% stake in Highcross for £225m – a 5.5% yield – in June. Bids were tabled for the share from TIAA Henderson Real Estate, Rockspring and M&G Real Estate.
Earlier this week it emerged that Hammerson had also outbid Benson Elliot to buy the £500m mothballed Martineau Galleries scheme in Birmingham for around £25m. The REIT is already a part owner of the 13.6-acre site, which has consent for a 3m sq ft retail-led development, with LandSec and Ignis Asset Management.
One source said: “Hammerson would have liked Bluewater. Tidying up assets where you don’t have full ownership makes sense. If you look at the big plays, TH Real Estate, Land Securities and Hammerson have all been jostling. Intu also made some bold strides last year.”
Knight Frank is advising on Martineau.
Annabel.dixon@estatesgazette.com
