Hammerson, a prominent UK property firm renowned for its ownership of major shopping malls like Brent Cross and the Bullring, recently announced a successful rescue plan. This plan, backed by shareholders, includes a right issue valued at £525 million and the sale of its stake in the VIA Outlets operation to its joint venture partner for £274 million.
The company’s decision to implement this plan comes as a response to the ongoing challenges faced by the retail sector, which has been greatly impacted by the accelerated shift towards online shopping due to the pandemic. With retail tenants struggling and demanding lower rents, Hammerson aims to utilize the expected proceeds of £794 million from the rescue plan to reduce its debt and diversify its property holdings to rely less on retail.
Despite the difficulties faced by the industry, Hammerson has managed to avoid the fate suffered by rival mall owner Intu Properties. However, with a significant decrease in the value of its holdings in the first half of the year, the company is well aware of the challenges that lie ahead.
By completing the rescue plan and selling VIA Outlets, Hammerson is taking proactive steps to strengthen its financial position and secure its future in a volatile retail landscape. The company’s resolve to address its issues indicates its commitment to long-term sustainability in the property market.
Overall, Hammerson’s strategic decisions align with its goals of navigating the uncertain retail environment and emerging stronger from the current challenges.
For more information on Hammerson’s rescue plan and future outlook, visit their official website here.
To learn more about the impact of COVID-19 on the retail sector, click on this link here.
