Hammerson says mall occupancy falls slightly

Britain’s third-largest real estate investment trust, which is behind the proposed Eastgate Quarters scheme in Leeds and the Sevenstone project in Sheffield, said occupancy across its mall portfolio for the July-septamber period fell to 97.1 per cent, from 97.2 per cent in the previous quarter.

“Polarisation in consumer markets is benefitting our regionally dominant shopping centres and convenient retail parks, both of which continue to attract successful retailers,” chief executive David Atkins said.

Footfall and sales in its British shopping centre portfolio declined 1.9 per cent and 3.8 per cent respectively while in France footfall and sales fell 4.9 per cent and 6.5 per cent respectively, the company said.

Hammerson said it had also signed 81 new leases, representing 23,000 sq metres and £4.4m of rental income per annum.

At its £485m Principal Place scheme in East London, Hammerson said talks were progressing with CMS Cameron McKenna in respect of the pre-letting agreement and it had started talks for the residential component of the project.

“While we remain confident in the long-term outlook for the London office market, occupier demand has been muted and remains susceptible to fluctuations in the global economy,” it said.