After bagging a major 297 Million Pounds deal to purchase the Silverburn shopping centre near Glasgow, Hammerson has managed to complete the largest ever takeover deal by a real estate investment trust. The deal is being carried out in association with the Canada Pension Plan Investment Board.
In effect, the center was put up for sale by the Lloyds Banking Group after its owner went in receivership. The deal has come out as the latest sign pointing towards the fact that the bank is taking on a harder approach towards problem property loans, having been one of the largest lenders to the sector all throughout the economic boom.
As per the terms of the deal, Hammerson will pay a total of 148.5 Million for the Silverburn centre, which is an initial yield of 6%, after having faced some tough competition from other sources. The deal will be funded via existing bank facilities, at a rate of 37.5 basis points over the bank's lending rate.
Yesterday, Hammerson also managed to close a deal for the purchase of one of France's largest shopping centre developments, under the terms of which, the company will pay 50 Million Euros
(44.5 Million Pounds) to commence with the building work and acquire the Les Terrasses du Port in Marseilles from a Dutch group.