Orion European Real Estate Fund Stalls on Hammerson Deal
- Hammerson’s £400m retail park disposal in doubt
- Orion European Real Estate Fund stalls on deal completion
- Completion deadline extended to May 6
- £21m deposit may become due if deal fails
Hammerson has disclosed that the £400 million sale of seven retail parks to Orion European Real Estate Fund is in jeopardy as Orion has expressed no intention to complete the transaction by the agreed-upon date. According to the unconditional sale and purchase agreement, both parties were required to finalize the deal on April 23. However, Hammerson stated that Orion has informed them of its unwillingness to meet this deadline. Despite ongoing legal discussions between the two companies, Hammerson remains prepared to fulfill its obligations under the Sale and Purchase Agreement (SPA). If the deal is not completed by May 6, they will serve a notice to terminate the SPA, making the £21 million deposit immediately payable to Hammerson. This news follows Hammerson’s recent announcement that it collected only 37% of its Q2 rent bill and suspended dividends due to the coronavirus outbreak.
Factuality Level: 8
Factuality Justification: The article provides accurate information about Hammerson’s £400m sale being in doubt, the terms of the agreement, and the potential consequences if Orion does not complete the transaction. It also mentions the impact of the coronavirus outbreak on rent collection. The information is relevant to the main topic and presented without sensationalism or personal perspective.
Noise Level: 2
Noise Justification: The article provides relevant information about a specific business transaction that has been affected by the COVID-19 pandemic. It is not filled with irrelevant or misleading information and stays on topic without diving into unrelated territories. However, it does not offer much analysis or actionable insights.
Financial Relevance: Yes
Financial Markets Impacted: Hammerson, Orion European Real Estate Fund
Financial Rating Justification: The article discusses a potential impact on financial markets as it involves the sale of retail parks by Hammerson to Orion European Real Estate Fund and the possibility of terminating the deal. It also mentions Hammerson’s rental collection issues due to the coronavirus outbreak, which could affect its financial performance.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: Minor
Extreme Rating Justification: There is no extreme event mentioned in the text. The situation described involves a financial crisis related to a failed property sale due to the coronavirus outbreak.
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