Hammerson, the largest UK-listed owner and manager of prime retail and leisure anchored city destinations in the UK, France and Ireland, announced the successful pricing of 6.5-year EUR350m bond on the back of strong operational momentum.
The bond, priced at 110 basis points over euro mid-swaps with an annual coupon of 3.5 per cent, represents the first stage of the early refinancing of the Group’s EUR700m 1.75% Sustainability-Linked bonds maturing in June 2027.
The Group provides an update on trading, noting strong operational momentum throughout the key summer months:
- UK footfall increased 6% year-on-year, representing an extra 1.3 million customer visits during the summer period, while its two French destinations were up 5% year-on-year, and Dundrum was up 3% – all ahead of national benchmarks
- Standout UK performances include the Bullring (+12%), The Oracle (+9%) and Cabot Circus (+5%) – all benefitting from repositioning works and new openings
- Strong footfall growth drove strong year-on-year sales for Hammerson’s brand partners, with like-for-like sales growth in the UK up 4% over the summer period and 2.4% for the Group
- Leasing demand for prime space is strong, with 71 long-term deals exchanged over the same period, representing £10m p.a. of headline rent (at 100%)
- Long-term lease agreements were signed 29% ahead of previous passing rent and 15% ahead of ERV on a net effective basis; the UK delivered its strongest performance at 22% over ERV
As a result of the earlier issuance of its EUR350m New Bonds, Hammerson now expect FY25 earnings to be around £101m.
Rita-Rose Gagné, CEO of Hammerson plc, commented: “We are delighted with the high levels of demand for our bond issue, a testament to the strength and success of our strategic delivery. We continue to invest in destination repositioning and leasing to drive returns while our JV buyouts have enabled us to take full control of our assets and grow income. Demand for our prime space is robust, as evidenced by the operational performance we drove over the summer. Momentum is continuing into September and October and we have a strong pipeline ahead.”
