Last updated 9th May 2022
Hammerson plc
Hammerson is a major quoted UK property group which specialises in the retail sector.
It is a member of the FTSE100 with a portfolio of retail space across 14 countries, chiefly in the UK, Ireland and France with a portfolio valued at £5.4 billion which includes 16 destinations with nine premium outlets across 17 cities – including London, Bristol, Birmingham, Paris and Dublin – and some 1 million sq ft of lettable space. In the UK, Hammerson’s prime centres include Brent Cross and the Goodsyard in London, the Bullring in Birmingham and Cabot Circus in Bristol.
Today, Hammerson is emerging as a significant developer and its City Quarters concept is gathering momentum. It involves creating a mix of residential, workspace, retail and leisure space, using land around its shopping centres in cities including Birmingham, Bristol, Dublin and Leeds.
The group currently has nine development projects underway. Meanwhile during 2021 Harry Badham, previously UK head of development at AXA IM Alts and with a track record in urban regeneration, joined Hammerson as chief development and asset repositioning officer.
Hammerson has inevitably been battered by Covid, the growth of online retail sales and the tougher retail climate and it has been through a series of merger discussions with potential partners which have not come to fruition. Meanwhile, it has made major disposals to reduce its debt pile to £1.8 billion and introduced a new, more flexible, leasing approach.
In March 2022, Hammerson chief executive Rita-Rose Gagné said: “We are already seeing the tangible results from our strategy with strong occupier leasing demand, reduced vacancies, improved collections, a lower cost base and clear path to value creation from our land bank.”
Financials
To view the financials for Hammerson plc, visit Companies House and use Company ID 00360632.
Results from Hammerson for the year to December 2021 pointed to improving trading conditions as the business rebounded from Covid. Adjusted earnings rose by 122% to £81 million from £37 million previously, helped by increased net rental income. The group saw strong footfall recovery as restrictions were relaxed and strong demand for its prime space. But the group reported a loss (IFRS) of £429 million after a £470 million portfolio revaluation deficit, although this was an improvement on the £1,735 loss the group reported in 2020. Net debt fell by 19% to £1.8 billion after disposals giving gearing of 67% and the group said it still had ‘ample liquidity’ of £1.5 billion in undrawn committed facilities.
Developments
Today Hammerson is accelerating its development programme across land of just over 100 acres which it owns and where it is progressing feasibility studies for mixed-use developments, mainly next to its existing retail sites.
In 2021, the group made total capital expenditure of £102 million which included £51 million on developments and £15 million on its UK flagship destinations.
Hammerson has four near term development projects – Martineau Galleries, Birmingham; The Goodsyard in London; Dublin Central; and Grand Central, Birmingham, where it is either well advanced on detailed planning or able to achieve rapid progress.
At Bishopsgate Goodsyard, a mixed-use urban quarter in Shoreditch in east London, the group is planning a project involving some 500 new homes and 1.4m sq ft of workspace. In March 2022, Hammerson and its jv partner Ballymore completed a Section 106 agreement, unlocking the regeneration area.
Meanwhile, at Martineau Galleries in Birmingham, Hammerson envisages a new neighbourhood in the city centre with some 1 300 new homes and 1.4 million sq ft of work space. At Grand Central also in Birmingham, the group also sees significant potential for significant workspace and ground floor and leisure space.
At Dublin Central, Hammerson is involved in one of the city’s largest regeneration projects which will involve almost 100 new homes and 44 k sq m of workspace.
Meanwhile, Hammerson is also working on mid-term and strategic land promotion and mixed-use projects at Brent Cross and Croydon in London, on the Eastgate Quarter in Leeds and at Bristol Broadmean. The group also has long term strategic land in its Swords venture.
Glenigan data
Glenigan data highlights the scale of the development programmes where Hammerson is involved. Work at the Goodsyard, Bishopsgate – a £900 million mixed-use development involving almost 1500 homes and commercial space – is set to get underway in 2024 and detailed designs are being prepared (Project ID: 13331083). Meanwhile, Glenigan data also shows that detailed plans have been granted and work is set to get underway this autumn on a £21.3 million project to demolish a former Debenhams store in Leicester and build over 330 flats on a scheme where Hammerson and City Living are clients (Project ID: 20490306).
Conclusion: Focus on new developments shows strong potential
Hammerson took a bold step to focus on retail property earlier in the decade. However, Covid and the current upheaval in the retail sector has inevitably taken its toll on the group”s development programme. Yet Hammerson”s portfolio of prime sites are continuing to attract shoppers and the group”s new City Quarters concept significant potential in the medium and longer term. As the group strengthens its balance sheet through its disposals programme, its formula for upgrading major centres and expanding the leisure element as well as developing land around its sites all point to it continuing to be a significant source of work for the construction industry.
Winning work with Hammerson
Hammerson puts a strong focus on embedding ‘sustainability and responsible ways of working’ into its strategy. The group’s Positive Places initiative provides a vision to be the best at demonstrating value to industry and stakeholders through sustainable properties. It also includes a supply chain code of conduct available on the group’s website at http://www.hammerson.com/
Contacts:
Harry Badham, Chief Development and Asset Repositioning Officer.
Tel: 0207 887 1100
Robin Dobson, UK Director of Development
Tel: 0207 887 1100
Tony Coughlan, Development Manager
Tel: 0207 887 1100