Hammerson makes cautious steps forward with schemes

PROPERTY investor Hammerson, which is involved in a number of stalled schemes in Yorkshire, has posted a 13% rise in net asset value since the middle of last year and said there were signs of recovery in its markets.

The bluechip investor, which owns or holds stakes in some of Europe’s most popular malls, such as the Birmingham Bullring, said the value of its properties fell 9% to £5.1bn over the year to December 31, having rebounded 6% since June.

Hammerson, which is a partner in plans to build two major shopping centres in Yorkshire – Sevenstone in Sheffield and Eastgate Quarter in Leeds – both of which are presently on hold, signalled development plans in France.

It said it would start work on the development of two sites in Paris.

Hammerson today reiterated that Eastgate Quarter has outline planning consent and that the group has a development agreement with Leeds City Council and agreements for leases with anchor tenants John Lewis and Marks & Spencer.

In Sheffield, Hammerson also has a development agreement in place with Sheffield City Council and an agreement with John Lewis to anchor the centre. Discussions continue with the city council to complete the land acquisition phase of the project, the group said.

The property group said occupiers remained cautious about leasing space, but it signed 395 leases over 176,000 sq m of property in 2009.

Property sales compressed its annual rental income to around £294m, up 1.1% on a like-for-like basis.

Chairman John Nelson said: “Recently there has been a recovery in property markets, supported by strong investor demand and the policy of central banks supporting financial markets.

“The economic outlook, however, remains uncertain, and against this background the board intends to maintain a prudent approach to financing.”