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Hammerson to sell 2 UK assets for £85M

said it agreed todivest two properties in the U.K. for a combined £85 million.

Inthe first deal, the company agreed to sell the Manor Walks Shopping Centre inCramlington, Northumberland, to Arch Commercial Enterprise Ltd. for £78 million.

Thesale price represents a net initial yield of 7% and is "moderately below"the property's 2015-end book value, according to a statement.

Theasset is adjacent to the company's Westmorland Retail Park in the Cramlingtontown center. The shopping center underwent a 6,040-square-meter in 2013 to add acinema and diningspace. The company said it will retain ownership of the retail park.

Hammersonalso sold a 4,000-square-meter asset in Folkestone, U.K., for £7 million. Theproperty is leased to retail chain company The Range.

Thecompany noted that both transactions were agreed on prior to Brexit.Hammerson CEO David Atkins added that through the transactions, the company hasreached £200 million of its target £300 million divestment program.