Footfall and sales down at Hammerson
Published: 08 November, 2011
Hammerson saw declines in footfall and sales during the three months to 30 September 2011
During the quarter, footfall and sales in Hammerson’s UK shopping centre portfolio declined 1.9 per cent and 3.8 per cent respectively, in part reflecting the impact of the riots in August and strong prior year comparisons at some retailers.
Overall occupancy in the portfolio was broadly stable at 97.1 per cent at 30 September 2011 down from 97.2 per cent three months previously.
The company said demand for space from retailers has remained encouraging and it signed 18 long-term leases in theUKretail portfolio at rents typically 5 per cent above the December 2010 ERV. Significant new lettings in the UK include: Basler, Hawes & Curtis and Footlocker at Brent Cross, London; Cult at Bullring, Birmingham; Pandora and Oliver Bonas at Cabot Circus, Bristol; Hush Puppies at Oracle, Reading; Fat Face at Queensgate, Peterborough; Fossil at Silverburn, Glasgow; and Dunelm atCentral Retail Park, Falkirk.
Across the portfolio the number of units in administration has fallen to 40, from 53 at 30 June, representing less than 1 per cent of passing rents.
The quarter also saw construction start on the extension and reconfiguration of Queensgate Shopping Centre, Peterborough. The extension will be anchored by a 54,000-sq ft Primark, and the new floorspace will be handed over to retailers in July 2012 to enable trading to commence in Autumn 2012.
Hammerson continues to capitalise on increasing demand for quality catering within the portfolio. At Spiceal Street, Birmingham, units have been handed over to occupiers for fitting out. The new restaurant quarter will open to the public in November, in time for Christmas trading. Planning applications have also been submitted for two restaurant units at Fife Central Retail Park, Kirkcaldy, and a restaurant unit at Ravenhead Retail Park, St Helens.
Chief executive David Atkins said: "Over the period, the economic environment has weakened and consumer confidence has fallen in both the UK and France. Nevertheless, we continue to deliver on our strategic objectives of maximising income growth and creating value from our high quality portfolio, whilst reducing costs and retaining financial flexibility. Polarisation in consumer markets is benefitting our regionally dominant shopping centres and convenient retail parks, both of which continue to attract successful retailers."
