Hammerson benefits from improving UK economy in Q1

23rd Apr 2014 07:10

- Footfall, sales at UK shopping centres improve- Leases signed above ERV- Occupancy remains highRetail-focused property group Hammerson gave a confident outlook on Wednesday, saying that an improving UK recovery filtered through to demand in the first quarter.The company, which owns the Brent Cross shopping centre in London and the Bullring in Birmingham, said it saw improving leasing demand over the three months to March 31st, while footfall and sales at UK shopping centres were up 0.6% and 0.5%, respectively."Economic recovery, particularly in the UK, is generating confidence in our consumer markets," said Chief Executive David Atkins.During the period, Hammerson signed 80 new leases across its portfolio for 22,000 square metres, representing over £5m per annum.Leases were signed at 8% above estimated rental value (ERV) across its larger UK division, and were 1% above ERV in France.Overall occupancy across the portfolio was 96.6% by the end of the period, unchanged from the same date the year before.Atkins said that the ongoing strength of investment demand in both the company's territories is providing support for valuations."We are on site with a number of retail developments, and are progressing other major retail schemes, to capitalise on this demand from both the consumer and investment markets."BC