Revised planning application for Eastgate Quarters to be submitted by end of year

Outline planning consent has been renewed for the project and, after changing the scheme to improve its viability, the firm said it anticipates submitting a new application in the next few months.

John Lewis and Marks and Spencer will be anchors for the scheme, which has been put on hold.

Hammerson is still in discussions with Sheffield City Council to complete the land acquisition phase of the Sevenstone retail development in Sheffield, which was also stalled during the recession.

The scheme has outline planning consent and some of the buildings within the scheme have detailed planning consent. The company said it is working closely with key stakeholders, including John Lewis, to progress the project.

Hammerson booked a 7.8 per cent rise in its half-year adjusted net asset value (NAV) today although it said it remains cautious for the future as fears for a relapse in property values stalk the market.

The retail property specialist posted adjusted NAV per share of 454 pence in the six months to June 30 and a 5.2 per cent mark-up in its 5.2bn portfolio.

The board has declared a 2.9 per cent increase in its interim dividend to 7.15 pence per share after achieving a five per cent like-for-like increase in net rental income to 140 million pounds over the period.

Good lettings progress, particularly in the second quarter, upped occupancy to 96 percent, compared with 95 percent six months earlier.

Despite the solid results, chairman John Nelsom said the company was still brooding over the condition of its core UK and French real estate markets, which have been hit hard by flagging economies and a shortage of debt.

"Although our markets have continued to recover from recession over the first half of 2010, the outlook remains uncertain," he said in a statement.

"The underlying quality of our portfolio has been demonstrated in our results, with lower vacancy and growing income in a challenging environment," he added.

Hammerson posted its figures just days after the International Monetary Fund fanned fresh doubts about the strength of the global banking system in a report which suggested some small and medium-sized banks needed more capital to cushion against commercial mortgage defaults.