Hammerson in talks to sell £1bn stake in owner of Bicester Village
British shopping centre giant Hammerson is reportedly in talks to sell its £1bn stake in Value Retail, owner of Bicester Village, the luxury retail complex.
Hammerson, which owns London’s Brent Cross and Bristol’s Cabot Circus centres, is negotiating with several investors and potentially finalising the deal for its approximately 40 per cent stake by year-end, according to Sky News.
While Hammerson’s stake is valued at around £1.2bn, a potential sale may end up at a discounted figure.
In a statement to Sky News, Hammerson stated: “Value Retail is an attractive portfolio, but, as we’ve previously stated, it’s not part of our core proposition to have an investment in a platform. We are not forced sellers and will look to maximise our options at the right time.”
City PM approached Hammerson and Value Retail for comment.
Value Retail, founded by real estate entrepreneur Scott Malkin, has a portfolio including locations in China, Barcelona, Frankfurt, Madrid, Milan, and the upcoming Belmont Park Village in New York.
Shareholders are likely to welcome the anticipated sale of the stake as it aligns with Hammerson’s ongoing strategic reshaping under chief executive Rita-Rose Gagne, who faced activist investor pressure this year.
Gagne announced further non-core asset sales and the return of dividend payments.
The property developer sold its 50 per cent stake in the major retail development to joint venture partner Unibail-Rodamco-Westfield, in April.
Despite pandemic problems, Value Retail has boosted brand sales by 14 per cent year on year and footfall by 13 per cent, following the successful refinancing of over £1bn in debt facilities.