Hammerson has followed up last year's move into the out-of-town retail sector with the purchase of its first development site. It has paid£18.4 million to buy a long leasehold interest in the Sittingbourne Industrial Park at Sittingbourne in Kent from a private investor.
The property comprises 35,000 sq m of light industrial and warehouse units built in the early 1970s. The rental income is about£1.4 million a year. But Hammerson plans to redevelop the site with a mixed retail, leisure and residential scheme.
Last year, Hammerson bought its first standing retail warehouse investment, Parc Fforestfach in Swansea, South Wales, and then acquired the specialist out-of-town investor Grantchester.
Hammerson managing director John Bywater said: 'This property provides an attractive yield, and the opportunity to add value through a redevelopment in an area that is likely to see significant inward investment in the next few years.'
Hammerson was represented by Holley Blake. The vendor was represented by iOG.