Hammerson launches placing to fund retail buys

25th Sep 2014 07:23

Retail property developer Hammerson is launching a share placing to help it buy a major shopping centre in the English Midlands and to start a new outlet shopping centre venture.Hammerson plans to issue about 71.3m new ordinary shares of 25p each, representing about a tenth of the company's issued share capital.The group hopes to use the cash to buy the remaining 40% that it does not already own of Highcross Shopping Centre in Leicester for £180m, as well as other potential investments.It also intends to commit £100m of capital to Value Retail and a new outlet shopping centre venture with Value Retail, APG and Meyer Bergman, the VIA Outlet Fund.Chief executive David Atkins said: "This placing enables us to accelerate our focus on experience, convenience and luxury, the three key areas underpinning our successful retail locations."The new investment into VIA Outlets and Value Retail will build on our knowledge of this exciting sector and gives us access to opportunities in new markets alongside proven partners."Furthermore, our acquisition of the remaining 40% in Highcross will allow us to capture the full future rental uplift from a number of asset management activities at this strongly performing centre."