OWNERS of shopping centres throughout Europe have suffered considerably from the lockdown and one of the UK based operators, Hammerson has seen profits fall by £90 million (€99 million).
The problem has been that with shopping centres closed, tenants have not wanted to pay any rents which has then made the situation very difficult for the centre owners.
In June, Intu which had 16 major centres including Lakeside in the UK and one in Spain called in Administrators and pulled out of a proposed huge development in Torremolinos but continues to trade whilst a decision is made about its future.
Hammerson is restructuring, has taken advantage of UK Government financial support, is selling its stake in VIA Outlets to its Dutch trading partner for £274 million (€301 million) and is to issue a £550 million (€605 million) rights issue all in a bid to reduce its indebtedness of £2.2 billion (€2.42 billion).
There will be a restructuring of the board of the company and it plans to try to attract a number of new businesses to its centres such as the Bullring in Birmingham by offering flexible and initially discounted leases.