Orion Real Estate Fund V, operated by Orion Capital Managers, has informed property development and investment company Hammerson that it does not intend to complete the planned purchase of a portfolio of seven retail parks by the original deadline.
The transaction, worth £400m, was announced in February and due to be completed on 23 April, under the terms of the unconditional sale and purchase agreement (SPA).
Hammerson has reported that it remains ready and able to comply with its completion obligations, and is in dialogue with Orion.
In accordance with the terms of the SPA, following Orion’s failure to complete by 23 April, Hammerson will serve a notice to complete, specifying that this must occur by no later than 6 May.
If the completion still does not happen, the £21m deposit currently held in escrow will become immediately due and payable to Hammerson.
The sale of a portfolio of seven retail parks, the largest deal of its kind for the past decade, follows the company’s 2018 strategic decision to exit the retail park sector over the medium term.
Hammerson has sold 14 parks since July 2018, generating sales proceeds of £764m.