In a strategic move, Hammerson, the UK’s largest shopping malls giant, is reportedly in advanced talks to divest its 40% stake in Value Retail, the owner of the renowned Bicester Village outlet center. This development comes as Hammerson, a major player in the UK shopping center landscape with flagship properties like the Bullring and Brent Cross malls, strategically offloads properties amidst shareholder pressure.
While Hammerson’s intention to sell its stake in Value Retail has been known, the latest reports indicate that talks are progressing rapidly, potentially providing quicker returns for shareholders. The estimated value of Hammerson’s holding in Value Retail is approximately £1.2 billion, with reports suggesting a potential sale in the range of £1 billion. The potential buyer remains undisclosed at this stage.
In response to inquiries, Hammerson clarified that while Value Retail holds an attractive portfolio, it does not align with the core proposition of the company. It emphasizes that the decision to sell is not driven by external pressures, and the company aims to explore options to maximize value at an opportune time.
Value Retail, beyond its flagship Bicester Village, boasts 11 additional outlets across Europe and China. The significance of Bicester Village is underscored by outlets operating under this name, collectively forming The Bicester Collection. Notably, Value Retail is actively expanding, with the upcoming Belmont Park Village slated to open next summer in New York.
A notable shareholder in Value Retail is Scott Malkin, a prominent property entrepreneur and the company’s founder. The outcome of these advanced talks holds significance for both Value Retail’s future trajectory and Hammerson’s strategic portfolio. Stay tuned for further updates as negotiations unfold.
