Tuesday, December 22, 2009

Hammerson, partner pay £297m for mall

Anglo-French property investor Hammerson won a bid battle for the Silverburn shopping centre near Glasgow, paying £297 million (S$671.6 million) in a joint venture with the Canada Pension Plan Investment Board.

Gross rental income for the prime freehold, 93,000-square-metre mall is £18.4 million, representing an initial yield of about 6 per cent and an equivalent yield of 6.8 per cent, Hammerson said in a statement yesterday.

Hammerson – one of the UK’s largest shopping mall owners – will be the venture’s asset manager.

The commitment for each party is £148.5 million and Hammerson said it will fund its portion from existing bank facilities which have a margin of 37.5 basis points over Libor.

Silverburn was offered for sale in September on behalf of financial services firm Deloitte, acting as receivers of the mall’s holding vehicle The Elementary Property Company and Retail Property Holdings Limited, which owns the asset.

The shopping centre had been the subject of intense bidding from property investors hungry for prime assets, with major UK players including London & Stamford and British Land putting in offers.

Source: Business Times, 22 Dec 2009

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