Hammerson continues positive momentum on leases

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Hammerson

Hammerson has continued its positive run in its third quarter, with an uplift in both leasing volumes and new leases signed.

The shopping centre operator signed leases worth £6.8 million of rental income, a 17 per cent rise, for the three month period ending September 30, while occupancy remained stable at 97 per cent.

The leases signed were four per cent above previous passing and at 11 per cent above December 2016 estimated recovery value (ERV).

Meanwhile in the year to date, leasing volumes grew by double-digit rates in all segments: up 35 per cent to £24.9 million in total, while group lettings were six per cent ahead of previous passing and nine ahead of ERV.

Hammerson settled a total of 125 rent reviews in the year to date in the UK and Ireland, securing a total uplift in rent of seven per cent.

While its tenant sales in the UK remained flat during the quarter, in France it grew 5.6 per cent year-on-year and Dublin outperformed Hammerson’s other European cities with sales growing four per cent year-on-year.

Also during the quarter, planning for the extension of Brent Cross shopping centre in London was given the green light by authorities, while Bicester Village – which it owns with partner Value Retail – opened 30 new stores as part of its extension scheme.

“We have maintained good leasing activity across our portfolio of leading retail assets, demonstrating that brands are continuing to prioritise space in well-invested, prime locations,” chief executive David Atkins said.

“In the UK and France, our tenant sales have shown an encouraging pattern of improvement in Q3.

“The backdrop for retailers in the UK remains challenging but we believe our assets are well-positioned and will be resilient.”

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