Shares in Hammerson PLC (LSE:HMSO) rose 4.5% in early trading following the announcement of the £1.5 billion sale of its interest in Value Retail, the company behind Bicester Village in Oxfordshire.
The sale to private equity firm L Catterton, backed by LVMH Moet Hennessy Louis Vuitton, will generate around £600 million in cash proceeds for Hammerson. This move aims to simplify the London-listed property group's portfolio and enhance returns by focusing on prime urban real estate.
CEO Rita-Rose Gagné described the deal as transformational, stating it allows the company to reduce debt, invest in higher-yield assets, and return up to £140 million to shareholders through a buyback, pending approval.
The company has been restructuring its portfolio, selling several assets across Europe and the UK to strengthen its balance sheet, including the recent sale of Union Square in Aberdeen for £111 million.
The stock jumped 1.3p to 30.34p.