Hammerson, a major retail landlord based in the UK, Ireland, and France, has announced the reopening of its properties in these countries. However, the company is currently experiencing difficulties in collecting rent from some of its retail tenants.
Hammerson is the owner or has substantial stakes in prominent properties such as the Bullring and Bicester Village. It also operates full-price and outlet malls in France and the Republic of Ireland. As of June 29, the company has managed to collect 73% of the rent owed for the first half of 2020 in the UK, 53% in France, and 72% in Ireland. The figures for third-quarter rent collection are still being determined, but so far, Hammerson has only received 16% in the UK.
To strengthen its financial position, Hammerson has taken various measures, including participating in the UK’s Covid Corporate Financing Facility (CCFF) and implementing additional strategies. These actions have allowed the company to focus on implementing its business plans. As some tenants have been pressuring for more favorable rent deals, Hammerson has been addressing these requests on a case-by-case basis. Factors such as the tenant’s business model, risk profile, ability to pay, and government support available are considered during these negotiations.
With regards to the reopening of its properties, Hammerson has made significant progress. In England, 80% of eligible stores in flagship destinations have already resumed operations. In Ireland, all centers have been fully open since June 15. In France, half of Hammerson’s flagship destinations reopened between May 11 and May 13, and all of them have been trading since June 2. Currently, all brands and food and beverage operators within the French flagship stores are open, except for the theatre and concert hall at Italie Deux in Paris.
Despite these reopening efforts, Hammerson is still facing challenges in collecting rent. The ongoing impact of the COVID-19 pandemic has caused significant financial strains for both tenants and landlords in the retail sector. Nevertheless, Hammerson remains committed to working with its tenants to find mutually advantageous solutions during these uncertain times.
– For more information about Hammerson and its properties, visit their official website: https://www.hammerson.com/
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