Hammerson in share sale to finance investments

PROPERTY firm Hammerson is selling up to 71.3 million new shares to fund the purchase of its joint venture partner’s stake in a shopping centre in Leicester and a planned expansion in outlet fashion centres.

By The Newsroom

Published 25th Sep 2014, 16:27 BST

Hammerson is proposing to place the shares, which will represent around 10 per cent of the company’s current share capital, with investment institutions via an accelerated bookbuild. It did not say at what price the stock was being sold.

The shopping centre landlord said it had signed an agreement to buy the outstanding 40 per cent stake in the Leicester shopping centre for £280m from its joint venture partner, the former Royal Mail pension plan.

The 114-store Highcross centre generates a rent of £27.8m and adds to Hammerson’s shopping centre portfolio, which includes the Victoria Quarter and the forthcoming Victoria Gate scheme in Leeds. Hammerson is also investing £100m to expand its involvement in Europe’s fashion outlet centres.