£400m deal involving sale of Telford's Forge Retail Park in doubt

Hammerson announced the sale of seven retail parks in February, including the Forge Retail Park in Telford town centre, in a deal that would’ve been the largest UK retail parks portfolio sale in the past decade.

However Hammerson has now said that investment fund Orion European Real Estate Fund V has gone cold on the deal.

In a statement to the London Stock Exchange, Hammerson said: “Under the terms of the unconditional sale and purchase agreement (SPA), Hammerson and Orion are required to complete the transaction on April 23 2020.

“Despite this, and notwithstanding continued preparation between legal and property teams up until today, Orion has notified Hammerson this morning that it does not intend to complete the transaction on April 23 as it is obliged to do under the terms of the SPA.

“Hammerson remains ready and able to comply with its completion obligations under the SPA, and is in dialogue with its counterparties at Orion.

"In accordance with the terms of the SPA, if Orion fails to complete on April 23 2020, Hammerson will serve a notice to complete on Orion specifying that completion must occur by no later than May 6 2020.

"If completion does not occur by such date, Hammerson will take steps to terminate the SPA and the £21 million deposit which is currently held in escrow will become immediately due and payable to Hammerson.”

The Telford retail park next to the M54, one of the county's biggest, is home to the likes of Sainsbury's, Next and bargain chain B&M.

Hamerson, which also owns Birmingham's Bullring Shopping Centre, bought the Forge Retail Park in 2012 as part of a £254.5m deal.

It previously also owned the Wrekin Retail Park, home of Tesco and Sports Direct, but that was offloaded as part of its effort to leave the retail park sector in July last year. That deal was worth £35m.