// Orion looking to pull out of a deal that involved buying Hammerson’s £400m retail park portfolio
// Orion said it “did not intend to complete” the £400m deal
Hammerson’s prospective buyer of its £400 million retail park portfolio is looking to pull out of the deal.
The shopping centre giant said the Orion European real estate fund had said it “did not intend to complete” the £400 million deal they had agreed on February 21 for seven of the landlord’s UK retail parks.
Hammerson said it “remains ready and able to comply with its completion obligations” and was in discussion with Orion.
- 2/3 of rent not paid to Hammerson as retailers suffer coronavirus impacts
- Hammerson shares plunge 34%, attracting short-sellers
The deal was expected to be finalised on Thursday, and if Orion pulls out, Hammerson will “serve a notice to complete” no later than May 6.
If that second deadline passes, Hammerson would cancel the deal and pocket the £21 million deposit sent by Orion as part of the deal.
Hammerson is one of the many businesses to have been heavily impacted by the coronavirus lockdown.
Last month, it said it had only been paid 37 per cent of the rent that was billed in the UK for the second quarter of the financial year.
After stripping out rent that has been waived, deferred, or switched to monthly payments, the figure climbed to 57 per cent of what was due.