21st May 2025 09:30
(Alliance News) - Hammerson PLC on Wednesday said it has now substantially completed its acquisition of Brent Cross shopping centre, and guides for double-digit income growth in 2025.
The London-based property and investment company said it has now acquired 95% of Brent Cross units from abrdn UK Shopping Centre Trust, which holds the 59% of Brent Cross not already held by Hammerson.
Hammerson paid a net cash consideration of GBP186 million, which represented a 16% discount to the centre's December 31 book value.
North London-based Brent Cross was opened in 1976 and is a popular shopping centre. According to Hammerson's website it attracts annual footfall of 10.6 million, an average retail spend of GBP100 and has 8.3 million people within 60 minutes drivetime.
Hammerson's stake in Brent Cross now stands at 97%, and will provide an annualised earnings before interest, tax, depreciation and amortisation benefit of around GBP14 million to the firm.
Alongside Hammerson's acquisition of Westquay in November, the firm has now redeployed GBP321 million into consolidating control of its assets at an average destination yield of 8.5% and adding GBP25 million in total annualised Ebitda.
Meanwhile, like-for-like sales in the first quarter of 2025 were up 1%, said the company, including a particularly strong performance in March in the UK, up 2%.
In the year to May 16, Hammerson has exchanged 93 leases, representing 424,000 square feet of space and totalling GBP15.5 million in headline rent, which is 59% ahead of passing rent and 12% ahead of estimated rental value. On-year occupancy has increased by 70 basis points to 94%.
Looking ahead, its pipeline remains strong with more than GBP25 million in advanced negotiations.
"We have welcomed over 50 million visitors to our destinations so far in 2025 and have had an excellent start to the year across all aspects of our business. We've continued to execute our growth strategy and delivered strong operational momentum, with another period of record leasing, increased year-on-year occupancy, investment and consolidation in our assets," said Chief Executive Officer Rita-Rose Gagne.
"Brent Cross is an iconic destination with a loyal and strong catchment. The acquisition substantially consolidates our control and economic interest in line with our strategy to recycle capital into our landmark assets at higher yields and more attractive risk-adjusted returns.
"As a result of our actions, we now expect total [gross rental income] growth in the region of 10% for 2025 and re-affirm our adjusted earnings guidance for the full year."
Adjusted earnings for 2025 are anticipated at around GBP95 million, which would be down 4.0% from GBP99 million in 2024. The firm reported on-year gross rental income growth of 1.6% in 2024.
Shares in Hammerson were down 0.3% at 268.00 pence each in London on Wednesday morning. The stock is down 6.9% over the past year.
In Johannesburg, shares are down 0.6% at ZAR64.58 each. The stock is down 1.4% over the past year.
By Emily Parsons, Alliance News reporter
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