Property developer Hammerson has sold its stake in Value Retail, the owner of Bicester Village shopping centre, to Silver Bidco Limited for £1.5bn.
Hammerson said it would earn around £600m from the deal with the newly formed company, which was established by affiliates of private equity firm L Catterton.
It added that the sale, which is expected to complete in the second half of this year, would allow the group to focus on its unique prime urban real estate, reduce debt, reinvest in higher yielding opportunities, and return capital to shareholders.
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Hammerson initially explored a sale of its almost 40% holding in Value Retail in November.
The property firm’s CEO Rita-Rose Gagné said: “This is a transformational deal for Hammerson, generating cash proceeds of c.£600m 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.”
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