Shopping Centre Landlord Turns to Stake Sale and Equity Raise
- Hammerson considering selling stake in VIA Outlets to APG
- Possible equity raise through rights issue
- Shares slumped by 70% in past year
- Footfall and sales improving since reopenings
- Third quarter rent collection at 30% in UK
Hammerson, the shopping centre landlord, is considering selling a 50% stake in its European arm VIA Outlets to joint venture partner APG and raising funds through an equity issue. The company’s shares have dropped by 70% over the past year due to unpaid rents amid the pandemic. Despite improved footfall and sales since reopenings, it collected only 16% of owed rent from retail tenants before the third quarter. Hammerson is taking proactive measures to manage its cash flow and has secured £300m under the Covid Corporate Finance Facility.
Factuality Level: 8
Factuality Justification: The article provides accurate and objective information about Hammerson’s plans for a possible stake disposal and equity raise, as well as its current financial situation. It also includes relevant comparisons with another retail property company, Intu, to provide context. However, it could be more concise in some parts.
Noise Level: 3
Noise Justification: The article provides relevant information about Hammerson’s plans for a possible stake disposal and equity raise in response to the coronavirus crisis, as well as updates on its financial situation. It also mentions the recent struggles of rival Intu. However, it could benefit from more analysis or context on the broader implications of these events for the retail property market and the industry as a whole.
Financial Relevance: Yes
Financial Markets Impacted: Hammerson, APG, retail property sector
Financial Rating Justification: The article discusses Hammerson’s plans for a possible stake sale and equity raise, which impact the company’s financial situation and the retail property market. It also mentions the struggles of rival Intu, indicating broader challenges in the industry.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event mentioned in the article.
www.retailsector.co.uk