Shopping Centre

Hammerson sells Three Spires for £33m

Published:  28 April, 2011

Hammerson has sold the Three Spires Shopping Centre in Lichfield to Orchard Street Investment Management weeks after buying it from S Martins.

Orchard Street has bought the centre for a pension fund client for £33m, reflecting a yield of 7 per cent.

The 180,000-sq ft open, pedestrianised, shopping centre, the prime retail pitch in Lichfield, has 48 units on a single level. Tenants include TJ Hughes, Marks & Spencer (Simply Food), WH Smith, Superdrug and Argos.

 Knight Frank advised Orchard Street on the acquisition and CBRE advised the vendor.

The news came as Hammerson released an interim management statement for the period from 1 January 2011 to 28 April 2011, during which time it made £308m  of acquisitions announced which add growth potential to the portfolio.

At the same time a planning application has been submitted for one of the UK's largest shopping centre developments at Eastgate Quarters in  Leeds.

 Like-for-like shopping centre sales were up 1.5 per cent across Hammerson's UK centres, ahead of national benchmarks.

 David Atkins, Chief Executive, said: "This has been an extremely active period where, in line with our strategy, we have enhanced the growth prospects of our portfolio through both acquisitions and progressing major developments. We have also secured a new revolving bank credit facility, which provides flexibility going forward. Whilst the economic backdrop for consumers remains difficult, we are seeing the benefit of our focus on regionally dominant shopping centres and convenient retail parks, which continue to attract successful retailers."