Birmingham showcases real estate giant’s ‘more agile and resilient’ business

Real estate giant Hammerson has benefitted from a greater focus on its core city centre sites to become “a better, more agile, and resilient business”.

Hammerson owns 50% of the Bullring and Grand Central in Birmingham city centre, in a joint venture with the Canada Pension Plan Investment Board (CPPIB), and also owns Martineau Galleries. More than 250 tenants pay rent of £28m a year at its Birmingham sites.

Rita-Rose Gagné, chief executive of Hammerson, said: “We set out a clear strategy in June 2021 and our performance in 2022 underscores our belief that we are strongly positioned to deliver attractive total returns over the medium term.”

The business has returned to underlying growth, as adjusted earnings increased 60% to £105m.

However revaluation losses and net finance costs resulted in pre-tax losses of £164m in 2022 – a £265m improvement on the previous year.

How the exterior of Drum will look

Hammerson has completed the feasibility studies and submitted a planning application for a major repurposing of the former John Lewis store at New Street Station to create an workspace offer called Drum.

At Bullring, it will hand over the former Debenhams unit to TOCA Social and Marks & Spencer later this year.

Martineau Galleries, currently the Square Shopping Centre, is set to be transformed over the next decade and work has continued with Birmingham City Council and the West Midlands Combined Authority to finalise details for the scheme and prepare for the first phases of demolition and development.

Hammerson is part of the West Midlands delegation at MIPIM 2023 next week, where it will be showcasing its plans for its Birmingham estate.

Gagné added: “Today, Hammerson is a better, more agile, and resilient business. Our results are evidence of another year of significant strategic, operational and financial progress, against a volatile macroeconomic and market backdrop.

“We have enlivened and reinvigorated our assets by introducing new occupiers, uses and concepts. We are actively re-purposing our destinations, with an increased emphasis on commercialisation, marketing and placemaking, in turn creating exceptional spaces for our occupiers and customers.”