Talks on sale of Silverburn shopping centre

PROPERTY group Hammerson is in talks about a possible sale of the Silverburn shopping centre on Glasgow’s south side for around £140 million.

Silverburn, at Pollok, was bought in 2009 by Hammerson and Canada Pension Plan Investment Board (CPPIB) through a 50-50 joint venture for nearly £300million.

Hammerson highlighted its intention to sell off “non-core” assets and reduce debt when it announced first-half results during the summer.

It said yesterday: “Disposals of non-core assets remains a near-term priority to continue to strengthen the balance sheet, re-balance the portfolio and to enable the group to recycle capital for investment.”

Hammerson added: “The company confirms that it is in discussions on terms of a possible disposal of Silverburn, its flagship destination near Glasgow, which is held in a 50/50 JV with CPPIB. There can be no certainty that a transaction will take place, but the company confirms the pricing under discussion is £140m…the company will provide a further update in due course, if appropriate.”

Shares in Hammerson rose 0.45p to 30.91p.

Rita-rose Gagne, chief executive of Hammerson, said in August: “We have continued to respond to the changing landscape during the first half of 2021, which again was impacted by Covid-19. As we emerge from a unique moment in time, I see a pathway to create sustainable value as we transform the business to become more agile and able to anticipate and respond to this change. We own flagship destinations around which we can curate and reshape entire neighbourhoods and citycentre spaces for generations to come.

“To realise this opportunity we are focused on continuing to de-lever the balance sheet through disposals of non-core assets...driving value in our destinations and accelerating our longer-term developments.”

Hammerson and CPPIB put up £148.5m each in acquiring the freehold interest in Silverburn in December 2009.