// Hammerson confirms it is in talks over a possible sale of the Victoria Gate and Victoria Quarter shopping centres in Leeds for £120m.
// Victoria Gate, which Hammerson opened in October 2016, forms part of the Victoria Leeds shopping destination
Hammerson have confirmed rumours that it is in discussion with entities related to Redical Holdings to sell its Victoria Gate and Victoria Quarter shopping centres for £120 million.
The retail-focused real estate investment trust said there is no certainty that any deal will take place, but confirmed the potential price for the sale.
The 61,100 square metre Victoria Leeds destination connects the Grade II listed Victoria Quarter, home to luxury department store Harvey Nichols, and the Victoria Gate shopping centre, which contains a 24,000 sq metre John Lewis flag ship store alongside 30 boutiques and restaurants.
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The retail destination has an annual footfall of approximately 10 million and while the specific date for the class two transaction has not been confirmed, Hammerson said in a press release, that the sale aligned with its strategy of realigning its portfolio to “focus on prime urban estates through disposals of non-core assets, to strengthen the balance sheet, and to recycle capital into its core portfolio and its development pipeline.”
It added: “The company confirms that it is in discussions with entities related to Redical Holdings AG on terms for a possible sale of its Victoria Gate and Victoria Quarter shopping centres.”
“There can be no certainty that a transaction will take place, but the company confirms the pricing under discussion is £120m, which would represent a class 2 transaction. The company will provide a further announcement if appropriate.”
Last month, Hammerson announced that it expects its full year 2021 adjusted earnings to be in the range of £75 to £80 million, above the minimum earnings of £60 million the company predicted in December 2021.
Hammerson reported that UK sales remained strong during the period, at 97% of 2019 levels in November and 93% in December, even though footfall had decreasing marginally during Christmas as Government restrictions were introduced in the UK and Ireland.
In December 2021, Hammerson sold Silverburn shopping centre for £140m to London-based European private equity real estate firm Henderson Park.
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