Hammerson sells Watermark stake
Published: 30 December, 2016
GIC buys 50 per cent of Southampton development for £48.5m
Hammerson has contracted to sell 50 per cent of Watermark, the newly opened 180,000-sq ft leisure and dining development adjacent to the Westquay shopping centre in Southampton, to GIC, Singapore’s sovereign wealth fund. GIC is already Hammerson’s joint venture partner in the rest of the Westquay complex.
The development, which opened in December 2016, brings the total retail and leisure space at Westquay to over 1 million sq ft, reinforcing its role in Southampton as the regional destination for southern England. When fully leased the scheme will provide stabilised annual income of £5.5m pa and is currently 95 per cent let, offering customers a choice of over 20 restaurants including Five Guys, Bills, Cau, Franco Manca, Byron, Nando’s, Casa Brasil, Cosmo and Red Dog Saloon, many of which have taken their first locations outside London. The leisure offer also includes Hollywood Bowl and a 10-screen Showcase Cinema de Lux, which will open in February 2017.
The tenure of the Westquay joint venture between Hammerson and GIC has now also been extended and Hammerson will receive a fee from the JV for the ongoing asset management of the combined centre. The deal is expected to complete before the end of December 2016.
Hammerson CEO David Atkins said: “GIC is one of our key joint venture partners and we are pleased to take forward this relationship. The new restaurant and leisure complex at Watermark is the largest development of its kind in the UK, showcasing our skills in creating consumer-led destinations that cater to the family experience, bringing exciting new restaurants, the most technologically-advanced cinema in Europe and a stunning new Esplanade alongside the historic city walls.”