Hammerson has exchanged contracts on the sale of a Gloucester retail park for £54m.
The sale price reflects a net initial yield of 8.5% and is 8% below the 30 June 2019 book value.
The REIT is selling the park to a local authority which it declined to name.
Tenants at the 224,965 sq ft scheme, which is located to the north of Gloucester city centre, include Homesense, B&Q and Wren Kitchens.
Hammerson developed the site in 2005 and has since increased the overall number of units on the park to improve the brand mix.
Following this transaction, Hammerson has achieved £577m of disposals in 2019, exceeding its minimum disposal target of £500m-plus for the financial year. This includes the sale of a major stake in its Italie Deux flagship in Paris for £423m, announced in July, as well as additional retail park disposals.
David Atkins, Hammerson chief executive, said: “Despite a challenging investment market, we are successfully executing disposals in line with our priority to reduce debt and strengthen our balance sheet. These transactions also give us the flexibility to capitalise on the opportunities we see in the market, particularly with regards to our City Quarters pipeline, which is core to the future direction and success of our business.”
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