Hammerson seeks ‘clarity’ from Klépierre over takeover bid

Shopping centre REIT Hammerson will not finalise its acquisition of intu while French firm Klépierre remains “unclear” about its takeover bid for the REIT. In its Q1 2018 business update, Hammerson said: “While Klépierre’s position remains unclear, the board of Hammerson does not intend to finalise shareholder documents in relation to the proposed acquisition of intu. The PUSU deadline for Klépierre is 16 April 2018.” On a call to investors this morning, when asked if Hammerson was engaging with Klépierre, David Atkins, Hammerson’s chief executive, said: “We have not heard back from them, so there is nothing to engage with, but they know where we are.” Proposed takeover Hammerson proposed the takeover of intu at the end of last year before Klépierre’s bid for Hammerson itself emerged in March. Despite the raft of CVAs and administrations that have affected the UK retail market in recent months, Hammerson said it had reported “strong” results supported by a “flight to quality”. Occupancy across Hammerson’s portfolio was 97.1% and the company said the raft of CVA’s would have a “very limited” effect on its profitability. It said it expected the tenant CVAs and administrations as at 31 March 2018 to reduce rental income by £3.5m – or 0.9% of total income. Cushman & Wakefield valued Hammerson’s portfolio at £10.6bn to the end of March 2018, an uplift of 0.3% compared with 31 December 2017. UK shopping centre and retail park valuations were down by 0.6% and 1.0% respectively, while “UK other” valuations were up by 4.6%. High-growth markets Atkins said: “Our strategy and the positioning of our portfolio continue to deliver a strong operational performance. Our attractive high-growth markets of premium outlets and our Ireland assets are driving valuation growth and we are on track with our disposal programme.” Footfall at its UK centres was up by 0.5% and in France up by 3.5%, while Hammerson said it signed £7m of new leases in the quarter, 6% at above previous passing rent and 3% at above ERV at 31 December 2017. Hammerson has also started work on the Brent Cross extension (pictured), where London’s first Cinema de Lux has been secured alongside an agreement for a new John Lewis store. To send feedback, e-mail alex.peace@egi.co.uk or tweet @egalexpeace or @estatesgazette