Hammerson, a prominent mall operator in the UK, is currently exploring various options to raise funds and improve its financial position. One of the key decisions on the table is the potential sale of its 50% stake in VIA Outlets, a successful venture operating upscale outlet malls across Europe. The company is in advanced discussions with its joint venture partner APG, a Dutch pension fund, regarding the potential disposal of its interest in VIA Outlets.
In addition to considering the sale of its stake in VIA Outlets, Hammerson is also looking into the possibility of raising equity through a rights issue. The company has been actively managing its cost base and cash flow, and recently secured approval from the Bank of England for up to £300 million under the Covid Corporate Finance Facility (CCFF).
Despite the challenging economic environment due to the global pandemic, Hammerson has seen improvement in footfall and sales following the reopening of its flagship destinations in Europe. Rent collection in the UK for Q3 has shown a significant increase to over 30%, excluding monthly payments and deferrals, compared to 16% at the end of June.
Reports suggest that Hammerson is aiming to raise around £800 million through a combination of a rights issue and the sale of its stake in VIA Outlets. The rights issue alone is expected to generate £600 million of the total amount needed by the company.
By taking these strategic measures, including the potential sale of its stake in VIA Outlets and raising equity through a rights issue, Hammerson is demonstrating its commitment to fortifying its financial position and ensuring its long-term sustainability in the retail sector.
Learn more about VIA Outlets here.
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