UPDATE: Hammerson to raise PS138.5 million through placing shares

Hammerson PLC said on Thursday it will raise gross £138.5 million through placing shares to partly fund its acquisition of the remaining interest in Bullring & Grand Central.

The London-based real estate investment trust placed 48.25 million new share to institutional investors at 287 pence each or R 68.80 apiece.

In aggregate, the placing will raise gross proceeds of about £138.5 million and net proceeds of around £135 million.

The placing price of 287p represents a discount of 2.5% to the closing price on Wednesday, which was 294.4p.

The company said this morning it is suspending its share buyback and plans to tap into existing cash resources to buy Birmingham’s Bullring & Grand Central for £319 million. It expects this deal to close in early next month.

Hammerson expects trading in the UK placing shares to commence on August 5.

‘We are delighted with the really positive response and outcome of this important equity placing for Hammerson aligned with our acquisition of the remaining 50% stake in Bullring and Grand Central,’ Chief Executive Officer Rita-Rose Gagne said.

Earlier on Thursday, Hammerson reported that pretax profit was £79.1 million for the six months that ended June 30, swung from a loss of £24.0 million a year earlier.

Net rental income was £80 million, up 9.6% from £73 million, driven by what it called ‘active asset management’ and ‘strategic focus on high quality landmark destinations’.

Hammerson declared an interim dividend of 7.94 pence, up 5.0% from 7.56p.

Basic earnings per share swung to 16.2p from loss per share of 103.8p.

As at June 30, net tangible assets per share was £3.81, up 2.7% from £3.70 at June 30, 2024 and was also at £3.70 at December 31.

‘Demand for our space has never been stronger, reflected in high occupancy, growing footfall and sales, and another period of record leasing,’ Hammerson’s Gagne said.

Looking ahead, Hammerson raised its guidance for 2025, both from better-than-expected like-for-like growth and the acquisition of Bullring & Grand Central.

Annual earnings guidance is revised up to £102 million from £95 million estimated previously.

Shares in Hammerson ended up 0.9% to 297.00p in London on Thursday. They closed up 1.8% at R 71.47 in Johannesburg.

Copyright 2025 Alliance News Ltd. All Rights Reserved.