Troubled UK retail REIT Hammerson has revealed it is considering the sale of its 50% stake in the Via Outlets joint venture it holds with Dutch pension fund APG to shore up funds, as well as launching a significant cash call.
Hammerson, like much of the embattled UK retail property sector, has seen the Covid-19 crisis deepen its financial woes. The firm announced last month that it had collected just 37% of its second-quarter rents, with only 16% of rents paid at the start of the third quarter.
Over the last three years, retail headwinds, failed mergers and halted deals have seen the firm's share price fall by more than 75%.
While Via Outlets was valued at over £1 bn (€1.1 bn) last September when Hammerson's participation reached 50%, analysts have recently suggested that its worth could have plummeted by 60%. Dutch media reports say that APG has confirmed it is in advanced talks to close a deal on Hammerson's half stake.
Via Outlets was formed in 2014 and comprises 11 outlet centres across Europe.
Hammerson confirmed on Monday it was considering raising new equity via a rights issue, with sources suggesting this could be as much as £600 mln. The timing is relevant as the firm is expected to unveil a significant devaluation of its assets when it reports its six-month results for 2020 on Thursday. Further details of the cash call are expected to emerge at that time.
Earlier this year, Hammerson chief executive David Atkins said he would be stepping down as chief executive of the firm after 10 years at the helm. He remains in the role while the firm seeks a replacement.
Chair David Tyler also announced his resignation in June, prompting the appointment of former LandSec CEO Robert Noel as Hammerson's new non-executive chair.
