Hammerson and Aviva sell Queensgate Shopping Center to Invesco for £202 million (UK)

Hammerson plc and Aviva Investors, who own Queensgate Shopping Centre in Peterborough in a 50:50 joint venture, have exchanged contracts to sell the freehold of the center to Invesco Real Estate for £202 million (approx. €242.3 million).

Net passing rent for Queensgate is currently £13 million (approx. €15.6 million) and the disposal is expected to complete in early 2014. The transaction is marginally below Hammerson's book value at June 2013.

Originally built in 1982, the 83,300m² shopping center has more than 110 stores and restaurants. Hammerson, in its capacity as the centers’ asset manager, delivered a 5,500m² Primark store and an improved catering offer in 2012.

Hammerson will now recycle the capital into higher return opportunities in both the UK and France.

David Atkins, Chief Executive of Hammerson, said: "This disposal brings further liquidity into the business and follows our recent successful $443 mln US private placement. 2014 will see major progress on our development projects and these additional funds will help us grow the business through our substantial development and refurbishment programme and selected acquisitions."

Chris Paterson, Director Real Estate at Aviva Investors, said "This has been an excellent partnership and we have enjoyed working with Hammerson. The center was well received by the market and we are very satisfied with the end result."

Hammerson and Aviva Investors were advised by Nabarro, Eversheds and CBRE.

Source: Hammerson

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