Member Article

Profits up at developer Hammerson despite delay to £1bn shopping centre project

London-based property developer Hammerson has posted pre-tax profits of £730m last year, despite a delay to one of its most high-profile projects.

The developer, which specialises in shopping centres, saw profits increase from £699m in 2014, an increase of 4%.

Despite the positive news posted to the stock exchange this morning, the developer has also announced a delay to its £1bn shopping centre development in Croydon owing to planning delays and continued discussions with tenants.

The joint-venture with Westfield, focused around Croydon’s Whitgift Centre and Centrale, will now start construction in 2017 with a targeted completion date of 2020/21.

However, David Atkins, Chief Executive at Hammerson, still struck a positive note when he said: “2015 was a strong year for the business, with our assets well placed to take advantage of improving consumer confidence and growing retailer demand for space in prime regional destinations, resulting in meaningful ERV growth.

“A clear focus on our strategic priorities has delivered strong earnings growth of 13% and supports a five-year track-record of 8% compound growth per annum.

He added: “We continue to recycle capital into assets best positioned to deliver value creation, with the acquisition in Ireland, Grand Central and Festival Park aligned with our strategy to own and manage prime retail destinations across Europe.

“Looking ahead, whilst we recognise the global economic and political uncertainties, we remain confident that the business will continue to deliver sustainable, attractive returns.”

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