Hammerson announces that it has completed the disposal of its interest in Value Retail to Silver Bidco Limited, a company established by certain affiliates of L Catterton (Disposal).
This transformational Disposal generates c. €714m of cash proceeds, enabling a step-change in the Company's ability to accelerate growth and unlock value-enhancing opportunities, including through organic investment in the Group's core portfolio, consolidation of ownership in core assets and adjacent markets; and accelerating value realisation from the Group's strategic land.
The immediate deleveraging effect of the Disposal allows the Company to move faster on these strategic priorities and enhance returns for shareholders. Approval by shareholders last week of the Company's proposed share consolidation and capital reduction facilitates the planned share buyback programme, which is expected to commence in October 2024. A further announcement regarding the buyback will be made in due course.
Last month, the Group's investment grade credit rating was upgraded by Moody's from Baa3 to Baa2, while Fitch updated its outlook to positive. The secured debt on Dundrum was also successfully refinanced, extending Hammerson's average debt maturity.
Rita-Rose, CEO of Hammerson plc, commented: "This is a significant moment for Hammerson. Three years ago, we promised a turnaround of the business, and today's completed Disposal means it has now been delivered. The Disposal immediately deleverages our business and opens up an exciting new era for Hammerson, focused on accelerating growth whilst maintaining our operational grip and financial discipline. Encouraged by a strong operational performance over the summer, I am excited that we are now firmly on the front foot and ready to build on our growing momentum and proven track record over recent years."
Image source - Pexels.
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