Commercial property giant Hammerson has completed the disposal of its interest in Value Retail — the operator of 12 international discount designer malls that includes the popular Bicester Village in Oxfordshire — to Silver Bidco, an affiliate of US private equity company L Catterton.

The Birmingham Bull Ring & Grand Central malls operator said the “transformational” disposal generates around £600 million of cash proceeds “enabling a step-change in the company’s ability to accelerate growth and unlock value-enhancing opportunities”. 

It noted this will include organic investment in its core portfolio, consolidation of ownership in core assets and adjacent markets; and accelerating value realisation from the group’s strategic land.

It added: “The immediate deleveraging effect of the disposal allows the company to move faster on these strategic priorities.”

Hammerson CEO Rita-Rose Gagné said: “This is a significant moment for [us]. Three years ago, we promised a turnaround of the business and today’s completed disposal means it has now been delivered. The disposal immediately deleverages our business and opens up an exciting new era for Hammerson, focused on accelerating growth whilst maintaining our operational grip and financial discipline.

“Encouraged by a strong operational performance over summer, I am excited that we are now firmly on the front foot and ready to build on our growing momentum and proven track record over recent years.”

Separately, Hammerson said it has had its investment grade credit rating upgraded by Moody’s from Baa3 to Baa2, while Fitch has also updated its outlook to Positive. Meanwhile, the secured debt on its interests in the Dundrum mall in Dublin was also successfully refinanced, it added.