11th Nov 2013 08:58
LONDON (Alliance News) - Hammerson PLC Monday said it has signed 94 new leases across its portfolio in the year to date, representing GBP9.1 million per annum in revenue, but said footfall at its shopping centres has declined.
In an interim management statement for the period July 1 to November 10, the retail property developer said the total value of new leases signed in the year was 82% higher than in the same period in 2012.
Hammerson said occupancy in the portfolio remained above it target of 97.1% at September 30 but tenants' sales in its UK shopping centres were flat in the third quarter.
The company owns Brent Cross shopping centre in Barnet, London, the Bullring in Birmingham and Italie Deux in Paris, France.
It said footfall in the UK was down 2.1% against the same period in 2012, and footfall across the French portfolio was down 2.8%.
In France, tenants' sales were down 4.0%, which it blamed on disruption from refurbishment works at its retail complexes.
However, in the two weeks following its relaunch in September, 650,000 people visited Italie Deux, a 7.5% increase on the same period last year.
Despite the decline in footfall, the company continues to expand its portfolio with construction work continuing at Les Terrasses du Port, its shopping and leisure destination in Marseille, while new leases have been signed with Hugo Boss and Ted Baker, which is opening its first French store outside of Paris.
Hammerson said the Marseille development is now over 90% let, and Printemps, the high-end French department store which anchors the scheme, has commenced its fit out ahead of the scheme opening in May next year.
The company also has been granted planning consent for the development of Victoria Gate a shopping site in Leeds.
Borrowings stood at GBP2.3 billion at September 30 and cash balances were GBP71 million, giving net debt of GBP2.2 billion, unchanged from June 30.
In early trading Monday, Hammerson shares were up 3.50 pence at 521.50p.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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