Hammerson predicts improving rent collections, gets Via Outlets sale clearance

By

Sandra Halliday

Published
Oct 15, 2020

Shopping malls giant Hammerson said on Thursday that it has managed to collect only 41% of the Q4 rent that it’s owed. That divides into the UK collecting 38%, Ireland 33%, and France a healthier 51%. 

But while the overall figure is well below half, it’s still higher than at the same point following the June quarter date across all of the group's territories.

The company runs the Bullring, Brent Cross, Bicester Village, Nicetoile, Italie Deux, Les Terrasses du Port and Dundrum Town Centre sites in the UK, France and Ireland, as well as a raft of other shopping centres and retail parks.

As of this week, all of its destinations are open. Some 94% of its flagship tenants that are permitted to trade by the relevant local governments in the UK and Ireland are now open, and over 99% in France.

With most destinations having fully reopened in June and July, despite the extension of a rent moratorium in the UK, Hammerson expects Q3 and Q4 rent collection rates “to continue to improve, and for occupiers to pay the agreed rent for these periods, even if discussions regarding Q2 are ongoing”. 

Landlords across the UK and in other countries have said that a large number of retailers have been pushing back on Q2 rent demands given that their stores were shut for most of that quarter.

The company also part owns the European outlets operator Via Outlets and said it has now had the necessary clearances from the relevant competition authorities for the €301m (£274m) disposal of it to its JV partner APG. No further clearances or approvals are required and as a result, the transaction is on track to complete in the final quarter of this year.

It also confirmed that its new CEO, Rita-Rose Gagné, will join the company and its board on November 2.