- What Hammerson is selling Abbotsinch Retail Park to Ashby Capital
- Why Hammerson is undertaking a non-core disposal programme under pressure from activist investor Elliott Advisors
- What next Hammerson still has a long way to go on its £500m sales target for 2019
Hammerson is close to selling Abbotsinch Retail Park in Paisley for around £65m in a deal which would be its first major disposal since it agreed a programme of sales with activist investor Elliott Advisors.
Ashby Capital has placed the 265,000 sq ft park near Glasgow under offer at a price reflecting a yield of around 7.25%.
According to the retail REIT’s website the asset has an average unexpired lease term to expiry of seven years, is fully let to 14 tenants including B&Q, Harveys, DFS, Dunelm, Wren, Tappi, Oak Furnitureland, Natuzzi and Pets at Home. It generates around £5m of annual income.
The start of things to come?
In February Hammerson agreed to establish an investment and disposal committee amidst pressure from its activist shareholders Elliott Advisors, which controls between 5% and 10% of the company, in order to oversee a programme of disposals. It is targeting £500m of sales in 2019 and £1.5bn overall. This includes wholesale disposals from its retail park portfolio as Hammerson looks to focus on prime shopping centres.
Last month the company exchanged contracts to sell Dallow Road Retail Park in Luton for £24m, 6% below book price.
Some investors, such as Peter Ferrari’s Ashby Capital, are taking a somewhat counter-cyclical view in selectively buying retail parks, particularly those with dominant catchments and those let on realistic and sustainable rents.
Savills is advising Hammerson on the sale. Avison Young is advising Ashby.