Hammerson Sells Slough Shopping Centre

LONDON-Hammerson has sold its Queensmere shopping centre in Slough, Berkshire, to a private property company for £105 million ($155 million). The 320,000-sf mall has recently undergone a £15 million ($22 million) refurbishment, which won a commendation in the British Council of Shopping Centre’s 1999 Shopping Centre Awards.

Marks &Spencer, Littlewoods and Allders are the main anchors and other recent arrivals include Accessorize, Julian Graves, Toni & Guy, Days Gone Bye, Ernest Jones and The Outlet. The centre produces approximately £8 million ($12 million) per annum in rent. At 8 per cent, the purchase represents an attractive yield at a time when the cost of borrowing is falling by the week.

Hammerson was advised by DTZ Debenham Tie Leung and Hartnell Taylor Cook represented the purchaser.

Hammerson chief executive John Richards said: ‘Having opened new regional shopping centres in Reading and Southampton in the last two years, we felt this was a good opportunity to realise the value of the investment in Queensmere. We shall use the proceeds to fund our continuing development programme, which includes the Bull Ring in Birmingham.’