Hammerson pins hopes on ‘£800m’ raise to survive crisis
Retail landlord Hammerson is considering tapping investors for up to £600m in a bid to shore up its finances during the coronavirus crisis.
Hammerson, which owns Birmingham’s Bullring shopping centre and Brent Cross in north London, also confirmed that it is in advanced talks to sell its 50 per cent stake in Via Outlets to joint venture partner APG.
Sky News reported this weekend that Hammerson, which has suffered a 70 per cent share price drop in the past year, is seeking to raise up to £600m through a rights issue.
Combined with the proceeds of the Via Outlets sale, the landlord could raise up to £800m, the broadcaster said.
However, shares in Hammerson fell 9.7 per cent to under 58p in morning trading.
Hammerson has already secured approval for a loan of up to £300m under the Covid Corporate Finance Facility (CCFF).
The coronavirus pandemic has exacerbated tensions between retail tenants and landlords, as many occupiers seek to renegotiate rents or, in some cases, close stores.
The moves to strengthen its balance sheet comes just weeks after rival retail landlord Intu entered administration.
Hammerson confirmed this morning that it had collected 30 per cent of the rent owed by tenants ahead of the third quarter.
The firm’s long term plan to exit the struggling retail park sector was dealt a blow in May when private equity firm Orion pulled out of a deal to buy seven sites for £400m due to the pandemic.
The transaction would have been the biggest sale of UK retail parks in a decade.
Since 2018 Hammerson has been in the process of exiting the retail parks sector to focus on a portfolio of flagship assets.