Monday 19 August 2019

Hammerson plans further residential development at Dundrum

The Dundrum Town Centre in Dublin is co-owned by Hammerson
The Dundrum Town Centre in Dublin is co-owned by Hammerson
Ellie Donnelly

Ellie Donnelly

Hammerson - which owns half the Dundrum Town Centre – is searching for an architect to plan a residential-led scheme on its “Phase 2” land to the north of the shopping centre in Dublin 14.

Separately, the retail landlord is also currently in the process of submitting a final planning application in respect of a residential development of over 100 apartments adjacent to Dundrum, which will enable a start on site next year.

Meanwhile, the group has swung to a loss of £319.8m (€356m) in the six months to June 30.

On an adjusted basis, profits were down 10.5pc to £107.4m (€119m). Net rental income dropped 12.3pc to £156.6m (€174m).

In Ireland, where the group’s portfolio includes the Ilac Centre and Pavilions in Swords, north Dublin, like-for-like net rental income fell by 7.4pc during the first half of 2019.

This reduction was only at Dundrum, which accounts for two-thirds of the portfolio’s value.

Dundrum's lower rental income was primarily due to the House of Fraser administration late last year, which resulted in a “significant” year-on-year reduction in rent.

However, the Ilac and Pavilions both reported increased income.

Hammerson suffered a net revaluation loss on its property portfolio of £423.4m (€471m) in the first half of the year.

More than half of this was down to its flagship shopping destinations in the UK, which had a revaluation deficit of £266m (€296m).

Hammerson also announced that it had achieved 90pc of its target to sell off £500m (€556m) worth of assets.

This included a £423m deal with AXA Investment Managers - Real Assets for a 75pc stake in Paris's Italie Deux shopping centre.

Hammerson's chief executive David Atkins said: "Our absolute priority remains to reduce debt. We stated our intention to achieve over £500m of disposals in 2019 and even in this tough environment where deals are taking longer to transact, we are now most of the way there.

"We will continue to pursue additional sales throughout 2019 and into 2020 to further strengthen our balance sheet."

(Additional reporting PA)

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