Retailers shop for more space at Hammerson
PROFITS at shopping centre landlord Hammerson have more than doubled after a “standout year” driven by the economic recovery and a return in consumer spending.
The owner of Brent Cross in London and the Bullring in Birmingham said profits more than doubled to £703.1m in 2014 from £341.2m a year earlier. This was driven by a big gain on the revaluation of its portfolio of £547m.
Chief executive David Atkins said rising employment together with falling food and petrol prices has boosted consumer confidence, which in turn has prompted retailers to open bigger stores at its shopping centres.
“This is being seen regionally and not only in London. People are spending more freely and it gives retailers the confidence to take more space,” Atkins told City A.M., citing Topshop, Reiss and River Island as examples.
As a result, the company generated a net rental income £305.6m last year, up 8.1 per cent on 2013 and by 2.1 per cent on a like-for-like basis.
Record levels of investment into the UK and French property market including retail has also boosted the value of Hammerson’s property. Its net asset value per share – a key industry measure – jumped 11.3 per cent to 638p last year, in line with forecasts.
The company is currently on site at six projects costing £250m. These include Victoria Gate shopping centre in Leeds and WestQuay Watermark in Southampton.