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Hammerson Closes GBP 236m Sale of 50% Stake in Highcross Shopping Centre
Wednesday 05 December 2018

5 December 2018 - UK-based retail property company Hammerson plc (LSE: HMSO) has completed the sale of the 50% stake in Highcross shopping centre in Leicester to an Asian investor introduced by M and G Real Estate for GBP 236m (USD 301m), the company said.

As previously reported at the time of exchange (5 October 2018), the sale price represents a 5% discount to December 2017 book value.
The completion of the transaction follows successful standard EU competition clearance and the arrangement of a GBP 165.2m loan by the joint venture (Hammerson's share GBP 82.6m).
The five-year loan is secured on Highcross on a non-recourse basis and the lenders are Helaba (Underwriter and Arranger) and National Westminster Bank Plc. The facility is repayable in full at maturity in February 2024 and the interest cost has been fixed at less than 3%.
Hammerson will use the net proceeds from the sale to reduce drawings under its revolving credit facilities and reduce net debt.

The proceeds from Hammerson's 50% share of the loan (GBP 82.6m) will also be used to reduce drawings under revolving credit facilities with no impact to Group net debt.
Highcross said it has seen a significant boost in its retail line up in recent years, with space proactively taken back from House of Fraser in 2016 now accommodating a flagship Zara store alongside a full-line JD Sports, as well as providing additional restaurant and leisure space.

This month has seen the first restaurant brand to sign as part of this transformation. Independent Indian brand Tamatanga will open its third restaurant in the region and Treetop Adventure Golf is set to open in the first half of 2019.

In St Peter's Square, Highcross' dedicated dining quarter, the Seattle-based Italian street pizza chain MOD Pizza, will also open in the coming weeks and replaces Chimichanga, which was subject to a CVA.
Date Published: 05/12/2018
Target: Highcross shopping centre/50% stake
Country: UK
Deal Size: 301m (USD)
Sector: Construction/Real Estate
Type: Divestment
Financing: Cash
Status: Closed
Vendor: Hammerson plc
Buyer: Asian investor introduced by M and G Real Estate