Hammerson plc has exchanged contracts for the sale of Manor Walks Shopping Centre, Cramlington in Northumberland to Arch Commercial Enterprise Ltd for £78 million.
Manor Walks adjoins Westmorland Retail Park and the two schemes form the core retail offer for Cramlington town centre situated nine miles north of Newcastle.
Further to acquiring the schemes in 2006, a 6,040m² extension of Manor Walks was completed in 2013 delivering a new Vue multiplex cinema and an enhanced dining offer with restaurants Prezzo and Frankie & Benny’s taking space, which marked debuts for both brands in Northumberland.
Hammerson will retain ownership of Westmorland Retail Park. Having attracted a number of new retailers to the park including a Marks & Spencer Simply Food and TK Maxx there remains further potential to enhance the tenant mix.
The sale price for Manor Walks represents a net initial yield of 7%, and is moderately below book value as at 31 December 2015.
In a separate transaction, Hammerson also today announces that it has also sold a 4,000m2 property let to The Range in Folkestone for £7 million, bringing the total value of disposals to £85 million. Both transactions were exchanged on terms agreed prior to the Referendum.
David Atkins commented: “These transactions represent further progress in our disposal programme with £200 million of our £300 million target now concluded. Having sold three assets in the last five weeks this clearly indicates that investors continue to recognise the attractive income returns from well-positioned retail property assets.”