21st Nov 2025 13:18
(Alliance News) - Hammerson PLC on Friday said it has bought the remaining 50% interest in The Oracle in Reading, England from its joint venture partner for GBP104.5 million.
The London-based real estate investment trust said the completion of the acquisition, from a wholly-owned subsidiary of the Abu Dhabi Investment Authority, was at a stabilised yield of 8.9%.
It expects the deal to be around 5% accretive to its financial 2026 EPRA earnings.
The Oracle is a retail, leisure and lifestyle destination. Hammerson said it is benefiting from "significant landlord and occupier investment in recent years".
The firm said it has secured additional leasing deals, including flagship store upsizes from Industria de Diseno Textil SA-owned Zara and Apple Inc.
Hammerson said it has increased occupancy to 97% from 93% at the start of the year at the centre.
Like-for-like footfall in the third quarter at the site was up 10% on-year following the opening of stores for TK Maxx and Hollywood Bowl Group PLC.
Hammerson raised its financial 2025 total gross rental income growth guidance to 19%, from the 17% previously guided.
It expects like-for-like gross and net rental income growth around 3%, while it increases its EPRA earnings forecast to "at least" GBP102 million from around GBP101 million.
Hammerson said for the group overall, footfall increased 5% year-on-year in the third quarter while like-for-like sales grew 2%.
It said the UK showed "particularly strong" footfall in the third quarter, with growth of 6%, while like-for-like sales climbed 3%.
The firm said it signed 261 leases with GBP38 million of rent, representing GBP190 million of contracted rent to first break, 49% ahead of previous passing rent and 12% ahead of estimated rental values.
"We have seized the opportunity to gain full control of The Oracle, an asset in transition, to capture the growth opportunities ahead. This represents our fourth JV buyout in a little over a year, as we continue to act decisively and execute our growth strategy at pace," said Chief Executive Officer Rita-Rose Gagne.
"Our recent investments at The Oracle have driven an uplift in footfall, sales and leasing with the recent openings of TK Maxx and Hollywood Bowl. We expect a further boost from the opening of flagship stores for Zara and Apple in early 2026. There is more to come."
Gagne said the firm expects "further growth in 2026 and 2027 as the full benefits of our repositionings and acquisitions come through, underpinning the group's medium-term guidance of an 8-10% EPRA [earnings per share compound annual growth rate]".
Shares in Hammerson climbed 6.7% to 307.80 pence on Friday afternoon in London, while shares were 6.3% higher at ZAR69.92 in Johannesburg.
By Michael Hennessey, Alliance News reporter
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