Thursday, 16 December 2010

Investment Column: Hammerson offers value to build on - Sharewatch, Business - The Independent

Hammerson, in partnership with the Oman Investment Fund, has struck a deal to offload its Bishops Square office site in London's Square Mile. The buyer, JP Morgan Asset Management, has agreed to pay about £560m, netting Hammerson, which has a 25 per cent interest in its venture with the Oman fund, nearly £80m – a nice £34m surplus over the book value at the end of June.

The deal adds to growing evidence of a recovery in the capital's office market, which fell faster than other parts of the real estate market in the recession but is now recovering at a swifter pace. While the Bishops Square sale is positive, offices are only a minor part of the Hammerson portfolio. Just over half is prime shopping centres and a fifth is retail parks.

That seems worrying with the consumer outlook uncertain. The European operations are not particularly cheery either. However, Hammerson boasts one of the largest project pipelines in the business, and has never been shy about investing in development. So it could steal a march on competitors .

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