4th Apr 2023 13:16
(Alliance News) - Hammerson PLC faces pressure from one of its major shareholders to change strategy, Sky News reported on Tuesday.
Lighthouse Properties PLC, which holds nearly 23% stake in Hammerson, has tabled resolutions to appoint two new board members amid discontent over Hammerson's strategy.
Lighthouse wants Hammerson to accelerate asset sales and resume dividend payments ahead of its annual meeting next month.
Hammerson, the London-based property development and investment company, will hold its annual general meeting on May 4. Lighthouse is a Mauritius-based property investor former Hammerson director Desmond de Beer.
https://news.sky.com/story/shopping-centre-owner-hammerson-under-siege-from-biggest-shareholder-12849638
In a letter published in Lighthouse's annual report said it did "not have confidence in the Hammerson board as currently constituted, having regard to the operational and strategic weaknesses reflected in Hammerson".
De Beer, who quit Hammerson's board last October, expressed unhappiness at its record of reducing administration costs.
"Relative to the size of its managed portfolio, Hammerson's administration costs have increased and objectively are high," Lighthouse said.
"This is a matter Hammerson can rectify in the short term through disciplined management."
Lighthouse added that Hammerson had shifted its focus "away from its core proposition as a retail REIT [real estate investment trust]".
"Despite owning world-class malls which continue to perform well, Hammerson trades at a discount to net asset value of over 50%," it added.
"Hammerson is comprised of three divisions: malls, Value Retail and developments. Lighthouse is of the view that Hammerson should dispose of its investment in Value Retail, right-size its exposure to developments and reduce administration costs significantly."
Hammerson shares were up 2.2% to 25.94 pence in London Tuesday morning. They rose by 2.8% in Johannesburg at ZAR5.80. In Johannesburg, Lighthouse stock inched up 0.3% to ZAR6.32.
By Artwell Dlamini, Alliance News reporter
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