By Ian McConnell
Silverburn shopping centre on Glasgow’s south side is being sold for £140 million by property group Hammerson and Canada Pension Plan Investment Board.
The pair acquired Silverburn, at Pollok, for nearly £300m through a 50-50 joint venture in 2009.
Hammerson and CPPIB have agreed to sell the shopping centre to entities affiliated with London-based private equity real estate manager Henderson Park and Eurofund.
In a statement to the London Stock Exchange this week, Hammerson said: “This represents a 4% discount to 30 June 2021 book value of £147m, and a net initial yield of 9.3%.”
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It added that the transaction was expected to be completed in the first quarter of next year and that a deposit of £40m is “currently being held in escrow”.
Hammerson highlighted its intention to sell off “non-core” assets and reduce debt when it announced first-half results during the summer.
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It had confirmed late last month that it was in talks about a possible sale of Silverburn and that the “pricing under discussion” was £140m.
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