Real estate giant faces demands from biggest shareholder
Real estate giant Hammerson has been hit with demands from its biggest shareholder over asset sales and dividend payments.
According to Sky News, Lighthouse, which holds a near-23% stake in the Bullring and Grand Central owner, said it did “not have confidence in the Hammerson board as currently constituted, having regard to the operational and strategic weaknesses reflected in Hammerson”.
In a letter published in Hammerson’s annual report, Lighthouse – the investment vehicle of Desmond de Beer, a former Hammerson director – is unhappy with the increase in administration costs when compared to the world-class portfolio which “trades at a discount to net asset value of over 50%”.
Lighthouse added that Hammerson, led by CEO Rita-Rose Gagne, had shifted its focus “away from its core proposition as a retail REIT (real estate investment trust) and believes these issues can be rectified in the short term through “disciplined management”. It called for the return of dividend payments.
Lighthouse says it, “is of the view that Hammerson should dispose of its investment in Value Retail, right-size its exposure to developments and reduce administration costs significantly”.
It is also understood that Lighthouse will vote against the re-election of at least two of Hammerson’s non-executives at its AGM in May.
A Hammerson spokesman said to Sky News: “Lighthouse’s proposals are unnecessary, distracting and value destructive. It is the board’s view that neither nominee has the experience or skills that will be additive to our board and it would not be beneficial to appoint them.
“The board is confident that the strategy and leadership team is the right one and our performance clearly demonstrates strong strategic, operational and financial progress.
“2022 was another year of delivery with like-for-like gross rental income of 8% and adjusted earnings up 60% year-on-year.
“2023 is another important year in the continuing transformation of the group as we focus on execution and create a sustainable platform fit for the future.”
