Asian Investor Acquires 50% Stake in Leicester Mall Amid Retail Challenges
- Hammerson sells 50% stake in Highcross shopping centre to Asian investor introduced by M&G Real Estate for £236m
- Sale price represents a 5% discount to December 2017 book value
- Transaction completed after EU competition clearance and arrangement of £165.2m loan
- Loan secured on Highcross on non-recourse basis, repayable in February 2024
- Net proceeds to reduce Hammerson’s credit facilities and net debt
- David Atkins praises the partnership with M&G Real Estate and future vision for Highcross
- John Duxbury expresses confidence in Highcross’s resilience amid retail challenges
Hammerson has sold its 50% stake in the Highcross shopping centre in Leicester to an Asian investor introduced by M&G Real Estate for £236m, representing a 5% discount to the December 2017 book value. The sale comes after successful standard EU competition clearance and arrangement of a five-year £165.2m loan by the joint venture, with Hammerson’s share in that loan amounting to £82.6m. The loan is secured on Highcross on a non-recourse basis and is repayable in full in February 2024. Hammerson plans to use the net proceeds from the sale to reduce its credit facilities and net debt, while the £82.6m from its 50% share of the loan will also be used to reduce revolving credit facilities without affecting its net debt. CEO David Atkins praised the partnership with M&G Real Estate and the future vision for Highcross, while John Duxbury, head of retail and leisure at M&G Real Estate, expressed confidence in the mall’s resilience amid retail challenges due to its prime location and strong lineup of brands.
Factuality Level: 10
Factuality Justification: The article provides accurate information about the sale of Hammerson’s stake in Highcross shopping centre, the sale price, loan arrangement, and the expected use of proceeds. It also includes quotes from relevant parties that support the facts presented.
Noise Level: 2
Noise Justification: The article provides relevant information about the sale of Hammerson’s stake in Highcross shopping centre and includes quotes from key figures involved in the transaction. It also discusses the potential resilience of prime retail assets in the face of e-commerce competition. However, it lacks any significant analysis or exploration of broader trends or consequences.
Financial Relevance: Yes
Financial Markets Impacted: Hammerson’s share price and the commercial real estate market
Financial Rating Justification: The article discusses the sale of a shopping center stake, loan arrangement, and expected use of proceeds to reduce debt, which are all financial topics. It also mentions the impact on Hammerson’s share price and the retail real estate market.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: Minor
Extreme Rating Justification: There is no mention of an extreme event in the text.
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