Wednesday, 6 December 2017

Shopping centres sold in £3.4bn deal

Shopping centre owner Hammerson, which owns Birmingham's Bullring shopping centre, has agreed a £3.4bn takeover of rival Intu.

The deal will create the UK's biggest property company, worth £21bn.

Intu owns the Lakeside shopping centre in Essex and the Trafford Centre in Manchester, while Hammerson owns Bicester Village designer outlet and Brent Cross shopping centre.

Shares in Intu rose by nearly 19% on the news while Hammerson's fell by 3%.

The combined group plans to target fast growing markets in Spain and Ireland.
John Strachan, chairman of Intu, said: "Intu offers high-quality retail and leisure destinations in the UK and Spain, which, when merged with Hammerson's own top-quality assets in the UK, in France and in Ireland, present a highly attractive proposition for retailers and shoppers in Europe's leading cities."

Hammerson chairman David Tyler said: "This transaction will deliver real value for shareholders.

The financial strength of the enlarged group and its strong leadership team will make it well-placed to take advantage of higher growth opportunities on a pan-European scale."

BBC        News.