The developer which failed to deliver a multi-million pound shopping development for Sheffield has now sold its retail park on the edge of the city for more than £60million.
Hammerson has completed the sale of Drakehouse Retail Park in Waterthorpe for £61.7m to 90 North Real Estate Partners, which is supported by former Dragons’ Den star James Caan CBE.
Hammerson had previously been working with Sheffield City Council to deliver the £400m Sevenstone retail development in the city centre. But both parties ended their deal by mutual agreement and the scheme has been scrapped and redrawn.
David Atkins, chief executive of Hammerson, said the sale will enable the firm to put more investment into two other retail developments in London.
He added: “The disposal of Drakehouse enables us to reallocate capital across our retail portfolio, including to our significant London retail development projects at Croydon and Brent Cross.
“By recycling the proceeds we are ensuring that we continue to focus our resources on the assets and developments which we believe will provide the best opportunities to deliver greater shareholder value in the future.”
The 21,000 sq metre Drakehouse site is fully let and current tenants include Homebase, Currys, Wickes and B&M. The sale price represents a net initial yield of 6.4 per cent.
The Sevenstone scheme has since been re-branded New Retail Quarter and covers the area between Barker’s Pool, The Moor and Wellington Street.
Council chiefs are seeking a new developer and hope to have the project completed during the 2018-19 financial year. The authority has described the proposed development as a ‘high-class regional shopping and leisure facility’.