Hammerson detects retail upturn
Published: 29 April, 2010
Hammerson has reported an improving picture at its UK malls in a management update for the first quarter of 2010.
Hammerson chief executive David Atkins said:”Our retail assets in the UK and France have demonstrated a sound trading performance and we continue to focus on maximising income from our portfolio whilst reviewing the performance of each asset and assessing other market opportunities."
Silverburn, Glasgow, is performing well since its acquisition and Atkins said: “It has confirmed our initial view that this excellent, well-let shopping centre has further potential for improvement.” Footfall in the first quarter of 2010 was up 3 per cent on the same period of 2009, following a 5 per cent year-on-year increase in 2009 as a whole, and there has been good interest from new retailers seeking representation in the scheme.
And in January the administrators to Thornfield Ventures Limited appointed Hammerson as development manager at The Rock, a 600-000-sq ft shopping centre development in Bury, Lancashire, with no capital commitment. Atkins said: “We have made good progress with both the letting and development. Leases for 73 per cent of the target income have been exchanged or are in solicitors' hands. The scheme, which has secured tenants including Debenhams, H&M, Marks & Spencer, Next, Primark, and a Vue Cinema, is on track to open on 16 July.”
At Union Square, Aberdeen, Hollister successfully opened on 26 March, and the centre is 81 per cent let or in solicitors' hands. Hollister's addition to the fashion line-up further enhances the status of Union Square, where footfall has reached 4.8 million since opening in October last year.
Overall occupancy in the UK retail portfolio was 94.0 per cent at 31 March 2010, down marginally from 94.5 per cent at 31 December 2009. But the UK shopping centre portfolio generated a 1.7 per cent like-for-like sales increase over the first quarter. Encouragingly, the number of retail units in administration fell further to 58 at 31 March from 64 at 31 December 2009 and income from tenants in administration at 31 March 2010 represented 1.3 per cent of the goup's passing rent against 1.6 per cent at 31 December 2009.
