(Reuters) - British mall operator Hammerson Plc (HMSO.L) said on Wednesday it had terminated its 400 million pound ($497.20 million) deal to sell seven retail parks to private equity firm Orion, sending its shares down 2.5%.
The company last month served a notice to Orion specifying that it is required to complete the deal by May 6.
“Following close of business on 5 May 2020, Orion notified Hammerson that it had resolved not to complete (the sale and purchase agreement) on the 6 May 2020,” Hammerson said.
The mall operator said that the deposit of 21 million pounds held in escrow by its solicitors would become immediately payable to Hammerson.
Hammerson has been trimming debt and fixing its balance sheet by divesting some of its portfolio to focus on its flagship sites, premium outlets and city quarters across Europe.
Reporting by Samantha Machado in Bengaluru; Editing by Anil D'Silva and Rashmi Aich