Hammerson sells Kent retail parks

Published:  26 May, 2017

Westwood and Westwood Gateway retail parks sold for £80m

Hammerson has exchanged contracts for the sale of the Westwood and Westwood Gateway retail parks in Thanet, Kent, to clients of BMO Real Estate Partners for £80m, having transformed the retail offer and significantly increased rents since acquisition.

The retail parks, covering a total of 268,000 sq ft, are located between Broadstairs, Ramsgate and Margate and benefit from a strong line-up of homeware retailers including Homebase, Wren, Tapi, SCS and Dunelm.

Hammerson acquired Westwood Retail Park in 2002 and since then has actively repositioned the asset through extensions and tenant engineering. The adjacent Westwood Gateway site was constructed in 2005 and a new retail terrace was added in 2009. A further extension of two units was added in 2016. Since acquisition, over 170,000 sq ft of new floorspace has been added and the rental income has increased by over 200 per cent.

The sale price represents a net initial yield of 6.5 per cent and is slightly below December 2016 book value.

Hammerson CEO David Atkins said: “We continue to actively manage our retail park portfolio, realising proceeds to recycle into higher growth opportunities. We are progressing with our planned disposal programme for the year and remain committed to reducing leverage ahead of progressing with our development pipeline.”

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