Hammerson boss mad for Manchester as firm snaps up Arndale shopping centre

Hammerson has snapped up a stake in one of the UK’s biggest shopping centres as the retail real estate firm expands its UK footprint.

The FTSE 250 property company has paid £218m to acquire a 50 per cent stake in the Manchester Arndale shopping centre, marking the company’s first major external acquisition in over a decade.

In a statement, Hammerson chief executive Rob Wilkinson showered praise on the city of Manchester, adding himself to a growing list of businesses bosses that have renewed their focus on the region following the arrival of Andy Burnham in Downing Street.

“Manchester is one of Europe’s most dynamic and fastest-growing urban economies, benefiting from strong demographics, excellent connectivity and the largest retail catchment outside London,” he said.

“Manchester Arndale sits at the heart of this exceptional city and has established itself as a premier retail destination, attracting more than 45 million visitors each year.

“Ownership of this prime asset allows us to further strengthen our position in one of the continent’s leading cities.”

Hammerson launched a new £190m equity issue to fund the deal and has carved out a segment of the offer for retail investors through London-based Retailbook.

The centre is the largest in Manchester and one of the biggest in Europe, with over 40m annual visitors and around 1.4m square feet of retail floor space.

Hammerson, which also owns the Brent Cross shopping centre in London, today reported five per cent growth in like-for-like rental income, with retail occupancy of 96 per cent, its highest in seven years.

The company upgraded its earnings forecasts as it reported a three per cent rise in footfall in the first half of the year.

Last year, London’s Brent Cross shopping centre came under the full control of Hammerson after a £200m deal to buy out Aberdeen was confirmed.