Standard Life has emerged as the frontrunner to buy Hammerson’s Monument Mall in Newcastle-upon-Tyne.
The property investor and developer appointed CBRE to market the opportunity last month and Standard Life is close to agreeing a deal for around £75m – a 4.25% yield.
Hammerson bought the 200,000 sq ft shopping centre in 2011, and then embarked on a £15m redevelopment. It generates rental revenue of around £3.3m a year.
It is expected that Hammerson will re-invest the cash raised from the sale into its investment pipeline.
Proceeds will help fund its recent acquisition of the £1.37bn Project Jewel portfolio in Ireland.
It is also in the process of buying Grand Central in Birmingham for around £325m, a deal that is expected to close by the end of the year.
