Hammerson moves focus to retail
Shopping centre owner and developer Hammerson has announced that it will now focus exclusively on retail after having sold its last remaining office property.
In a trading statement covering the period 1 July to 8 November, the company said it had occupancy of 97.3% at 30 September and that leasing in the period was 5% above estimated rental value, reflecting continued strong demand for prime retail property.
Tenants’ sales increased by 3.2% in the company’s UK retail portfolio, and by 0.3% in France. Hammerson signed 134 new leases in the period which included John Lewis for Eastgate Quarters, Leeds, and Debenhams for Elliott’s Field in Rugby.
There was small decline in footfall of 1.1% compared to the third quarter of 2011. Over the quarter sales were particularly strong in August and September with the Bullring in Birmingham, Highcross and Union Square all performing well.
Never Miss a Retail Update!There were 73 units in administration at 30 September, which was broadly unchanged since the half year, of which 50 were still trading. Units in administration represented 1.7% of group rents.
During the period, Hammerson acquired the Victoria Quarter in Leeds and exchanged contracts to acquire a 25% share of the leasehold interest in the Whitgift centre in Croydon for £65 million. The company has undertaken a public consultation programme for the redevelopment of the centre and expects to submit an outline planning application next month.
Although remaining cautious overall economic outlook in the UK and Europe, David Atkins, Hammerson chief executive, said: “I’m delighted to have completed the transition to a retail focused company just nine months after announcing our revised strategy. We sold over £600 million of office properties above book value, and have redeployed £551 million of proceeds into prime retail locations in our chosen specialist sectors.
“In addition, we are making excellent progress with our developments, and our strong operational performance demonstrates that high quality properties in winning retail locations are continuing to deliver positive results.”
