Why the owner of Victoria Gate in Leeds has sold off sites

Retail property giant Hammerson has posted lower profits for 2019 as the owner of the Victoria Gate shopping centre in Leeds sold off sites to boost its balance sheet.
The Victoria Gate shopping centre.The Victoria Gate shopping centre.
The Victoria Gate shopping centre.

The shopping centre owner said adjusted profits slipped 10.9 per cent to £214m in the year to December 31, as it also received significantly lower rental income.

Earnings were impacted by the firm’s disposals programme, which generated £542m during the year, surpassing its £500m target.

Hide Ad
Hide Ad

David Atkins, chief executive of Hammerson, said: “Against a challenged retail and investment backdrop, we have exceeded our 2019 disposal target, exited the retail parks sector as we said we would and reduced debt by a third. This delivered nearly £1bn of transactions in the process.

“With the outlook for the UK retail market remaining uncertain, we believe we should maintain our focus on reducing debt during 2020.

“In strengthening our balance sheet further, we will create a more resilient business and also generate significant liquidity which could, at the appropriate time, be deployed to create enhanced returns for shareholders.”

Related topics: