Hammerson sells Thurrock shopping park for £93m

Hammerson said it has exchanged contracts and completed the sale of Thurrock Shopping Park, Essex, to TH Real Estate for £93m.

The sale price represents a net initial yield of 5.3% and is moderately below the book value as at 31 December 2015, Hammerson said. It purchased the property for £64m in 2012 as part of the Junction Fund Portfolio.

The company said ownership of a 26 acre site is being retained for development with planning consent for 320 residential units over 18 acres and 7,600m2 of retail and leisure.

Chief executive David Atkins said the sale was a further step in Hammerson's £300m disposal programme which highlighted its continued focus on rotating its 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," he said.