Dundrum Town Centre joint-owner Hammerson reported the first increase in the value of its portfolio since 2017, drawing a line under a torrid period for store owners that was marked by retailer closures and the pandemic.
The company’s portfolio of properties in Ireland, Britain and France was valued 11 per cent higher in the first half of the year, influenced by acquisitions and net revaluation gains.
On a like-for-like basis, the portfolio value was up 1.2 per cent, with Ireland flagships up 1.6 per cent.
It caps a big turnaround by the company, overseen by chief executive Rita-Rose Gagne, who announced earlier this year that she intended to retire five-years after taking the helm.
Gross rental income in Ireland for the six months fell 2.1 per cent to £18.8 million, with Hammerson attributing that to a single over-rented unit in its Ilac Centre property, formerly occupied by River Island. That has since been re-let to Normal, the company said, that brand’s first outlet in Ireland.
Hammerson also said it plans to raise as much as 10 per cent of its existing share capital through a placing to fund the buyout of the remaining stakes that it does not already own in two Birmingham shopping centres.
The property investment group plans to buy Canada Pension Plan Investment Board’s 50 per cent interests in the Bullring and Grand Central malls for £319 million, according to a statement on Thursday. The landlord, which traditionally owned stakes in the properties it manages alongside institutional investors, has been moving to take full ownership of assets to give it more flexibility.
European retail property is finally recovering after years of declining rents that wiped billions from store valuations.
A lack of new development and the conversion of surplus retail properties to other uses has helped to bring supply and demand closer to equilibrium, with those retailers that survived the storm now competing for the limited space in the best malls.
Rival mall landlord Unibail-Rodamco-Westfield reported a 1.2 per cent increase in its portfolio value in the six months through June. The company has continued to sell off properties to slash its debt pile, completing a further €1.6 billion of deals. The company has since agreed to sell its airport concessions at JFK, Los Angeles International, and O’Hare for $295 million. – Additional reporting: Bloomberg
