Hammerson reports high occupancy rates across portfolio

FTSE 100-listed retail property developer Hammerson has unveiled positive results for 2013, supported by high rates of occupancy and multiple acquisition projects.

In an interim management statement for the period from January 1st to May 8th, the group reported the acquisition of a 17% stake in Bullring for £154m at a yield of 5.7%, taking ownership to 50%.

Occupancy across the group's portfolio of properties remained high at 96.6%, group leasing was described as being "in line" with estimated rental value (ERV) with rates being 4.4% above in the UK and 1.3% below in France.

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In addition, the group also secured Citadium's first store outside Paris for Les Terrasses du Port, Marseille, which it said was now 86% pre-let.

The group added that the Croydon joint venture with Westfield completed the acquisition of a 25% stake in the Whitgift Centre and Hammerson also announced a successful public consultation to launch the Victoria Gate development in Leeds.

David Atkins, Chief Executive Officer of Hammerson, said: "Our operational performance, against a weak consumer backdrop, demonstrates the quality of our portfolio.

"Since the start of 2013 we have continued to review opportunities selectively and have deployed capital to winning locations, increasing our stake in Bullring and making excellent letting and construction progress at Les Terrasses du Port."

MF