Hammerson says it will stop granting future rent concessions to tenants

Business activity picks up as Covid-19 restrictions ease

Hammerson part owns Dundrum Town Centre. Photograph :Matt Kavanagh

Hammerson part owns Dundrum Town Centre. Photograph :Matt Kavanagh

 

Property giant Hammerson said on Thursday it would stop granting future rent concessions to tenants, as business activity picks up with further easing of coronavirus-related restrictions.

Hammerson, which operates in the UK, France and Ireland, said in a statement rent collection rates have continued to improve, with 89 per cent of billable rents collected for the year ended December 31st, 2020 and 68 per cent for the first half of financial year 2021.

British shopping centres reopened in mid-May with some social distancing rules in place as part of UK’s phased exit plan from lockdowns, which have kept shoppers at home and led to widespread rent deferrals and defaults in the retail segment. Non-essential retail reopened in Ireland the same month. Hammerson co-owns Dundrum Town Centre along with Allianz, and has a stakes in the Swords Pavilions and Ilac shopping centres in Dublin.

Although some pandemic-related restrictions have eased in countries where Hammerson operates, measures remain in place particularly affecting the food and beverage segment as well as leisure and cinema operators.

The Ftse 250-listed firm said it was too early to assess the operational impact from the additional restrictions announced in France that take effect from July 21st. In April, Hammerson exited its UK retails park sector, selling seven retail parks to Brookfield Asset Management for £330 million, shoring up its finances after posting a pandemic-driven loss of £1.7 billion for 2020. – Reuters