UK REITS Watch: Hammerson sees increase in demand for retail space

on Nov 11, 2013
Updated: Oct 21, 2019
Listen, Monday, November 11: Hammerson Plc (LON:HMSO) said today it was seeing “ongoing signs of recovery” in the UK markets which was boosting demand for retail space. The retail-focused real estate investment trust released its Interim management statement for the period from July 1 to November 10.

In other UK REIT-related news, LondonMetric Property Plc (LON:LMP) today announced it had acquired a distribution warehouse in Brackmills, Northampton for £9 million.
In today’s trading Hammerson shares gained one percent to 523.50p as of 13:16 UTC. The LondonMetric share price was 0.38 percent higher at 128.99p.
Trade these shares now through Hargreaves Lansdown from £5.95 per deal.

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**Signs of recovery**
Hammerson reported a strong rise in the total value of leases signed to date in 2013. The increase of 82 percent from a year earlier reflects the growing demand for retail space, driven by improving retailer confidence. The company said that it had signed 94 new leases across its portfolio so far this year, generating £9.1 million in annual rent – 13 percent ahead of previous passing rents.

The company’s overall occupancy remained above its target of 97.1 percent, as of September 30, 2013
David Atkins, Chief Executive Officer of Hammerson commented: “We are seeing ongoing signs of recovery in our markets, particularly the UK, where improving retailer confidence is generating increased demand for our retail space. We are capturing this momentum by advancing developments, refreshing our assets and pushing ahead with multichannel initiatives to enhance the shopper experience at our centres. We are well positioned to capitalise on opportunities in our markets.”


Meanwhile, LondonMetric has bought the Travis Perkins Distribution Centre in Brackmills, Northampton. The £9 million acquisition will be funded from existing resources, the London-based REIT said. The company highlighted the strategic location of the property, which will be occupied by Travis Perkins until March 2014. LondonMetric said it was already conducting detailed talks with Travis Perkins about extending their lease.

The purchase of the Travis Perkins Distribution Centre brings LondonMetric’s distribution portfolio at nine centres with a combined value of £212.8 million, representing about one fifth of the company’s portfolio.
Andrew Jones, Chief Executive of LondonMetric, said: “The off market acquisition of the Travis Perkins Distribution Centre illustrates our ability to secure a strategically located asset let to one of our key retail partners off an attractive yield”.
**As of 13:58 UTC buy Hammerson shares at 522.50 pence**
**As of 13:58 UTC sell Hammerson shares at 522.00 pence**
**As of 13:58 UTC buy LondonMetric shares at 129.20 pence**
**As of 13:58 UTC sell LondonMetric shares at 129.10 pence**
Trade these shares now through Hargreaves Lansdown from £5.95 per deal.
Prices can go up and down meaning you can get back less than you invest. This is not advice. Dealing services provided by Hargreaves Lansdown.


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