Hammerson is close to taking full control of the 914,000-square-foot Brent Cross shopping centre in north west London, the latest mall where it has been seeking to buy out its partner.
The REIT is in talks to buy out long-term partner Aberdeen's 59% ownership, with a figure of around £200 million expected to be paid, a discount to the £400 million book value. Hammerson would buy the Aberdeen UK Shopping Centre Trust, which would then be wound up. The Trust sold its other UK asset, the Churchill Square Shopping Centre in Brighton, to the owner of IKEA for £145 million in 2023.
In a statement Hammerson said: "Hammerson confirms it is in a process to acquire the units in the abrdn UK Shopping Centre Trust, which holds the 59% of Brent Cross not already held by Hammerson for a net cash consideration of around £200 million. Hammerson's existing managing stake, together with the SCUT units already acquired or for which binding contracts have been exchanged, currently represents an economic interest in Brent Cross of over 90%. The process is ongoing and a further update will follow in due course."
Green Street first reported on the talks.
Hammerson has been public about its desire to consolidate its joint venture assets into sole ownership for some time after selling non-core assets and its stake in Value Retail to shore up its balance sheet. Brent Cross and the Oracle in Reading have been seen as the most likely targets.
In its most recent results, Hammerson reported a record year of leasing following what it termed "a transformative year" to 31 December 2024. It had a closing portfolio value of £2.659 billion, down slightly from £2.776 billion the prior year.
It updated on its strategy of reinvesting, targeting acquisitions of stakes in its shopping centres and repurposing. Most recently it recycled £135 million to gain 100% control of Westquay in Southampton at a "significantly more attractive yield". Hammerson said it continued to see opportunities for joint venture consolidation, as reported.
Brent Cross opened in 1976, anchored by John Lewis, Fenwick and Marks & Spencer.
Owners Hammerson and Standard Life Investments, subsequently Abrdn, long worked on plans for a £4.5 billion regeneration plan for Brent Cross and the surrounding Cricklewood area but have sold down their interest in the land in recent years to focus on the shopping centre.
Hammerson and Standard Life Investments secured outline planning consent in 2010 for the overall development. The southern element of the wider regeneration plan, which includes almost 6,700 homes, new parks, offices and community facilities, was taken on by a joint venture between Argent Related and Barnet Council in 2015 after Hammerson and Standard Life Investments decided not to proceed, as reported. Detailed plans, submitted to Barnet Council in 2017 by Hammerson and Standard Life Investments for its remaining ownership, proposed the existing shopping centre double in size to around 2 million square feet to create space for more shops as well as 60 restaurants, a cinema complex and a new hotel.
In 2021, Barnet council bought the Brent South retail park in north London from Hammerson and Aberdeen Standard Investments for circa £55 million.