Property Week – 90 North pays Hammerson £61.7m for Sheffield retail park
Hammerson has completed the sale of Drakehouse Retail Park in Sheffield to James Caan-backed 90 North for £61.7m – just £1.5m more than it bought the asset for in 2003.
The sale price, which represents a net initial yield of 6.4%, was ahead of the 31 December 2014 book value. However, the price was only just above the £60.2m that Hammerson paid for the park in 2003 when it bought it from Capital & Regional’s Junction Limited Partnership. At the time, the yield was 5.4%.
Drakehouse is Sheffield’s largest retail park, spanning 22,500 sq ft, and it is fully let with tenants including Homebase, Currys, Wickes and B&M.
David Atkins, chief executive of Hammerson, said the proceeds from the sale would go towards funding its major development projects.
“The disposal of Drakehouse enables us to reallocate capital across our retail portfolio, including to our significant London retail development projects at Croydon and Brent Cross,” he said. “By recycling the proceeds we are ensuring that we continue to focus our resources on the assets and developments which we believe will provide the best opportunities to deliver greater shareholder value in the future.”
Article from Property Week