Hammerson to sell 50% stake in Southampton leisure site for £48.5m

30th Dec 2016 07:09

(ShareCast News) - Property developer Hammerson will sell its 50% stake in the Watermark leisure and dining site near the Westquay shopping centre in Southampton to GIC, Singapore's sovereign wealth fund and the company's Westquay joint venture partner, for £48.5mThe tenure of the Westquay joint venture will also been extended, with Hammerson receiving a fee from the joint venture for the ongoing management of the shopping centre. The deal is expected to complete before the end of the year.Watermark, which opened in early December, brings the total retail and leisure space at Westquay to 93,500 square meters and when fully leased it will provide yearly income of £5.5m.It is currently 95% let with over 20 restaurants including Five Guys, Bills, Cau, Franco Manca, Byron, Nando's, Casa Brasil, Cosmo and Red Dog Saloon, and also includes Hollywood Bowl and a 10-screen cinema with laser projection and surround sound, which will open in February 2017.Madeleine Cosgrave, regional head, Europe at GIC Real Estate, said: "As a long-term investor, we focus on ensuring that income streams from our investments are stable and resilient. To remain competitive in an age of e-commerce, retail destinations need to offer attractive consumer leisure experiences to boost footfall and customer retention. We believe Watermark's diverse tenant mix and offerings will provide these experiences and enable Westquay, which is already a prime regional mall, to continue generating good returns over the long term."Hammerson's chief executive David Atkins added: "The new restaurant and leisure complex at Watermark is the largest development of its kind in the UK, showcasing our skills in creating consumer-led destinations that cater to the family experience, bringing exciting new restaurants, the most technologically-advanced cinema in Europe and a stunning new Esplanade alongside the historic city walls."