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Newcastle’s Monument Mall shopping centre sold for £75m

British property development and investment company, Hammerson plc has sold Monument Mall, the Newcastle City Centre shopping centre, to Standard Life Investments UK Property Fund for £75m

The world renowned developers acquired the site in 2011 for £28m. In 2013 Hammerson completed a reconfiguration of the centre creating eight new large MSUs, transforming it into a high-quality shopping and dining destination.

As a result, the centre secured a number of high-end retail and leisure brands such as Michael Kors, The White Company, Hugo Boss, Reiss, Jack Wills, Kiehl’s and Rox, alongside the existing brands including TK Maxx and Sports Direct. The centre is now fully-let with 15 well-configured units covering 138,000 sq ft.

The disposal value is above the 30 June 2015 book value representing a net initial yield of 4.3% and crystallises a £24m (46%) profit on cost for Hammerson.

Hammerson has also sold a small land interest in Kingston-upon-Thames to St George for £12m.

David Atkins said: “Monument Mall is a great example of how Hammerson uses its development and asset management skills to transform retail venues and deliver strong returns to shareholders.

“The proceeds from the sale will be used to part fund our recent acquisition of the Jewel portfolio of loans in Dublin. We are on track with further transactions to complete the first tranche of £200 million of disposals in Q1 2016.”

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