Real estate operator Hammerson has announced the sale of a shopping centre in Scotland, completing £500m of its disposal programme.
The company told markets this morning it had exchanged contracts to offload Union Square in Aberdeen to an affiliate of Lone Star Real Estate Fund VI, L.P. for £111m.
The Square is a 52,000m location in the city and is expected to be fully completed in the first quarter of the year.
Hammerson said the sale represents an eight per cent discount on the December 2023 value of £121m with the proceeds going towards strengthening its balance sheet by reducing debt and allowing it to reinvest.
This comes after Hammerson embargoed on a major ‘strategic re-alignment’ of its portfolio, which with the sale of Union Square, means it has freed up £500m worth of capital, which was set out in early 2022.
Hammerson, which is listed on the London Stock Exchange, has seen its share price slump over the past 12 months as investors have sold out of property holding companies.
Its shares have been down 14 per cent in the last year, as high-interest rates have made the sector less appealing by pushing up the cost of financing.
The prospect of rates coming down however makes borrowing more enticing, as firms Hammerson look to better invest their capital into more core projects.