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Strategy

At Hammerson we are taking a realistic view of the structural and cyclical challenges facing retail, and focusing on the assets and capabilities that will allow us to make the most of a wider set of global trends in the years ahead. We are strengthening the business today, to create an even stronger business tomorrow.

Our Strategy

Our reshaped strategy announced in July 2018 focuses on three key pillars to elevate and accelerate performance:

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Capital Efficiency

  • Focus on balance sheet resilience
  • We are targeting net debt of c.£3bn at the end of 2019, using capital from disposals to prioritise reducing debt
  • Future share buybacks are on hold dependent on material disposals and greater market certainty
  • We will closely monitor capital expenditure commitments to support the reduction of net debt
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Optimised Portfolio

  • A portfolio-wide review to accelerate transactions has identified additional disposal opportunities
  • We are targeting in excess of £500m of disposals in 2019 ranging from portfolio sales and joint ventures to individual asset disposals from multiple sectors and territories. Disposals are subject to market conditions and achieving attractive terms
  • We will achieve at least two planning consents on short term City Quarters buildings in 2019, to enable a start on-site in 2020
  • We are working up plans for a number of strategic City Quarters sites in the UK, Ireland and France to realise our vision of creating vibrant city neighbourhoods around our flagship destinations
  • We will progress leasing and construction at the Italik and Les 3 Fontaines extensions, ahead of completion in 2020/21
  • We will continue to work with the relevant stakeholders on the Brent Cross and Croydon schemes
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Operational Excellence

  • Our work on the transformation of failing department stores will continue, to deliver alternative and experience-led spaces, with timing dependent on lease expiries and tenant failures
  • We will continue our active strategy to introduce a wide range of successful occupiers to our flagship destinations, along with targeted new brands, to reduce exposure to challenged categories, such as legacy high street fashion
  • We will continue to grow and diversify our F&B offer, responding to changing consumer tastes and expectations to ensure continued customer appeal
  • £2m investment in an extensive experiential entertainment calendar, including super events across our flagship destinations
  • We will invest in a range of customer experience improvements, including wifi and app upgrades, as well as trialling frictionless shopping and parking
  • We will complete the £7m pa cost savings target
  • We will continue to reduce utility costs and carbon emissions

Working with Hammerson