Hammerson sells stake in Bicester Village owner
Hammerson is to dispose of it entire interest in Value Retail, the company behind the Bicester Village designer outlet scheme, in a deal worth £1.5 billion.
The shopping centre owner has agreed to sell the interest to Silver Bidco, a newly-formed company incorporated in Jersey and established by certain affiliates of L Catterton.
Generating cash proceeds of around £600 million, the disposal will unlock value from 42% of Hammerson’s total portfolio by removing a “significant” low-yielding and non-controlling stake.
Hammerson said the move will enable it to focus on accelerating growth and value creation, with the proceeds used to reduce debt and reinvest in a pipeline of higher yielding opportunities.
Rita-Rose Gagné, chief executive of Hammerson, said: “This is a transformational deal for Hammerson, generating cash proceeds of c.£600 million whilst removing an overweight, low yielding and minority stake, and positioning us for growth and value creation.
“The disposal focuses our portfolio on prime urban real estate with a capital structure set for growth and significant capacity to advance our strategy in higher yielding opportunities, whilst enhancing returns to shareholders.”
