Thurrock shopping park comprises two retail schemes with a net internal area of 275,000 sq ft and is situated next to junction 31 of the M25. Tenants include M&S, Gap, Pets at Home, Decathlon, Boots, Evans Cycles and Dunelm. The sale price represents a net initial yield of 5.3 per cent and is moderately below the book value as at 31 December 2015.
Hammerson purchased the property for £64m in 2012 as part of the Junction fund portfolio. Since then it has spent £3m to redevelop the cinema site into three new retail units, upgraded the tenant line-up to a more fashion-led retail mix, including securing the UK’s first Nike Outlet on a retail park.
Hammerson is retaining an adjoining 26-acre development site where it has obtained planning consent for 320 residential units and 80,000 sq ft of retail and leisure.
Chief executive David Atkins said: “I am pleased to announce a further step in our £300m disposal programme which highlights our continued focus on rotating Hammerson’s retail platform towards our higher growth assets. Thurrock has shown excellent returns during our ownership and this transaction provides a good opportunity to crystallise a £26m profit on cost with further upside expected from the retained development opportunity.”