Hammerson to acquire Highcross and launch new European outlet venture for €357 mln (UK)

Hammerson has exchanged contracts to acquire the remaining 40% of Highcross, securing 100% ownership of Leicester’s major shopping center and committed capital to a new outlet center venture with its partners Value Retail, APG and Meyer Bergman.
The investments totalling £280 million (€357 mln) significantly strengthen Hammerson’s portfolio, increasing scale in both prime retail destinations and outlets centers, alongside the Company’s focus on its strategic development schemes and retail parks which are a key element of Hammerson’s growth strategy.
Hammerson has acquired 40% of Highcross, Leicester for £180 million (€230 mln) (including purchase costs) from its JV partner¹. The 105,600 m² center comprises three department stores, 114 stores and the St Peter’s Square dining quarter which features a 12-screen Cinema de Lux.
Hammerson is the only UK listed REIT to have strategic exposure to the outlet shopping center sector and today it is announcing a further investment of £100 million (€127 mln). The outlet village market has seen increasing demand from investors due to its consistent delivery of double-digit organic growth.
The outlet village proposition is supported by the increase in global tourism, with Chinese visits to Europe set to grow 72% by 2018², alongside the expansion of luxury retail brands generating increased merchandise.
Hammerson is investing £70 million (€89 mln) into VIA Outlets, a major new venture that will aim to acquire existing European outlet centers with growth potential. Alongside Hammerson, the other partners in VIA Outlets are Value Retail, APG and Meyer Bergman.
Source: Hammerson