Victoria Gate developer secures £7.5m annual rent ahead of autumn opening

HAMMERSON has secured an annual rent roll of £7.5m for its Victoria Gate scheme ahead of its opening this autumn.

The developer has secured 68% of its estimated £11m annual income from the 380,000 sq ft of lettable space, once rent free periods and other incentives have expired.

John Lewis is the anchor tenant for the scheme, and has a 255,000 sq ft store, while other retailers will include Maje, Cos, Anthropologie and The White Company.

By comparison, Trinity Leeds was 84% let at this stage in its development, despite being more than twice the size of the first phase of Victoria Gate.

It has a second phase planned for Victoria Gate, which has planning consent, for another 790,000 sq ft.

Hammerson’s full-year results for 2015, published this morning, showed its rental income has increased by 4% to £305.6m and its property portfolio valuation grew 9% to £8.4bn.

David Atkins, chief executive of Hammerson, said: “2015 was a strong year for the business, with our assets well placed to take advantage of improving consumer confidence and growing retailer demand for space in prime regional destinations, resulting in meaningful ERV [estimated rental value] growth.

“Looking ahead, whilst we recognise the global economic and political uncertainties, we remain confident that the business will continue to deliver sustainable, attractive returns.”