Retail Parks and Shopping Centres in UK and Europe are Feeling the Pinch

Shopping centres
Interior of the Bullring Birmingham Credit: Hammerson

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.

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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.


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