Hammerson and Aviva each own half of the Queensgate Shopping Centre, which generates annual rent of 13 million pounds, according to a statement today. Hammerson, the U.K.’s third-largest real estate company by market value, plans to invest its share of the proceeds in its home market and France.
“These additional funds will help us grow the business through our substantial development and refurbishment program and selected acquisitions,” David Atkins, Hammerson’s chief executive officer, said in the statement.
Hammerson is spending more on its retail properties as it seeks to increase shareholder returns at a time of weak economic growth in Europe. The developer invested 78 million pounds in Value Retail Plc, Europe’s third-biggest outlet-mall owner by floor space in June and July. Hammerson is developing a cinema and stores in Glasgow and is bringing more restaurants into other malls.
The transaction announced today is due to be completed next year, Hammerson said.
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