UK REIT Hammerson has completed the acquisition of Brent Cross Shopping Centre in London, having acquired 95% of the units in the abrdn UK Shopping Centre Trust which holds 59% of Brent Cross not already held by Hammerson for a net cash consideration of £186 million, representing a 16% discount to book value as at 31 December 2024 and a net initial yield of 8.6%.

Combined with Hammerson’s existing managing stake, the REIT’s interest in Brent Cross is now 97%, to provide an annualised EBITDA benefit of around £14 million.

Hammerson has also made an open offer to require all remaining abrdn UK Shopping Centre Trust units on the same terms.

Together with its acquisition of Westquay in November 2024, Hammerson has redeployed £321 million into consolidating control of its assets at an average yield of 8.5% and adding £25 million of annualised EBITDA.

The REIT’s destinations have welcomed over 50 million visitors in 2025 so far with Group like-for-like sales increasing by +1% during Q1 2025, including a strong performance in March 2025 in the UK (+2%).

Its strong leasing performance to 16 May 2025 outstripped 2024’s record performance with the exchange of 93 leases, representing +-39 000m² of space, totalling £15.5 million of headline rent at 100%, 59% ahead of previous passing rent, and 12% ahead of Estimated Rental Value (ERV). Year-on-year occupancy increased by 70 basis points in Q1 2025 to 94%.

The REIT’s long-term deals represent 91% by value and a weighted average unexpired lease term to break of 5.4 years, adding £76 million of contracted rent year-to-date. Its pipeline comprises £25 million in solicitor’s hands and in advanced negotiations.

Following the investment in its asset repositioning, Hammerson says it has major new openings scheduled for the remainder of 2025 including a flagship M&S and Odeon at Cabot Circus, Hollywood Bowl, and TX Maxx at The Oracle, a partnership between Adidas and Aston Villa at Bullring. It has also completed the major reletting associated with the former House of Fraser at The Oracle, having recently signed deals for significant upsizes with Zara and another major global brand.

“We have strong operational momentum that is testament to the quality, location and elevance of our portfolio of city destinations to our brand partners and consumers,” says CEO of Hammerson, Rita-Rose Gagne.

“Taking into account the capital deployed into the acquisition of Brent Cross, the disposal of Leeds Eastgate, the strong momentum from leasing and the benefits from the repositioning of our assets, we now expect total GRI growth for FY2025 to be in the region of 10%, with adjusted earnings of around £95 million. The full year benefit of repositionings and acquisitions in FY2025 will deliver further total GRI and adjusted earnings growth in FY2026, in line to deliver our Medium-Term Financial Framework.”

Following the disposal of non-core land at Leeds Eastgate in April for £26 million, a 23% premium to book value, it says it may look to realise further value from some of its development portfolio.

Hammerson’s pro forma loan-to-value (LTV) ratio currently sits at 34% with its net debt to EBITDA 7.2x.