Hammerson Share News (HMSO)

(Sharecast News) - Hammerson has completed the sale of the 50% stake in the Highcross Shopping Centre in Leicester to an Asian investor introduced by M&G Real Estate, it announced on Thursday, for £236m.The FTSE 250 firm had reported at the time of exchange in October that the sale price represented a 5% discount to the centre's December 2017 book value.It said the completion of the transaction followed successful standard EU competition clearance, and the arrangement of a £165.2m loan by the joint venture, of which Hammerson's share was £82.6m.The five-year loan was secured on Highcross on a non-recourse basis, with the including underwriter and arranger Helaba, and NatWest.Hammerson said the facility was repayable in full at maturity in February 2024, with the interest cost fixed at less than 3%.The company said it would use the net proceeds from the sale to reduce drawings under its revolving credit facilities, and reduce net debt.It said the proceeds from Hammerson's 50% share of the loan - £82.6m - would also be used to reduce drawings under revolving credit facilities, with no impact to group net debt.The board said Highcross had seen a "significant boost" in its retail line-up in recent years, with space proactively taken back from House of Fraser in 2016 now accommodating a flagship Zara store alongside a full-line JD Sports, as well as providing additional restaurant and leisure space.November had seen the first restaurant brand to sign as part of that transformation, with independent Indian brand Tamatanga set to open its third restaurant in the region, and Treetop Adventure Golf to launch in the first half of 2019.In the 'St Peter's Square' dining quarter, the Seattle-based Italian street pizza chain MOD Pizza was also opening in coming weeks, replacing Chimichanga, which was subject to a company voluntary arrangement.Hammerson said it had continued to curate a refreshed retail offer for shoppers, with a recent series of high quality signings from leading brands.Mercedes-Benz had taken the former Zara unit this week to deliver an experiential pop-up store, which Hammerson said would be a regional first.Luxury lifestyle brand The White Company and "modern vintage" peddler Cath Kidston had also recently opened pop-up units, taking advantage of the centre's strong customer catchment.Finally, in a Hammerson first, Australian stationery and gift retailer Typo had recently opened at Highcross as part of its UK expansion."We are pleased to have attracted a respected investor who shares our future vision for Highcross," said Hammerson chief executive David Atkins."The recent leasing momentum demonstrates that brands continue to open new stores, however the location has to be right, with only the best destinations making the cut."Atkins said the company did not see that changing in the short-term, with a "vibrant" brand line-up fundamental to the centre's success as a flagship venue."Given the high quality tenant base we were able to obtain attractive pricing on the Highcross loan and lock in low interest rates."Whilst Hammerson typically funds from the unsecured debt capital markets, this financing continues the use of secured debt on selected joint ventures."