Hammerson, one in all Britain’s greatest buying centre homeowners, is going through calls for from its greatest shareholder to speed up asset gross sales and resume dividend funds forward of its annual assembly subsequent month.
Sky News can reveal that Lighthouse, the funding car of former Hammerson director Desmond de Beer, has tabled resolutions to nominate two new board members amid simmering discontent over its technique.
In a letter revealed in Hammerson’s annual report, Lighthouse, which holds a near-23% stake within the Brent Cross-owner, stated it did “not have confidence in the Hammerson board as currently constituted, having regard to the operational and strategic weaknesses reflected in Hammerson”.
Mr de Beer, who give up the corporate’s board final October, expressed unhappiness at its file of lowering administration prices.
“Relative to the size of its managed portfolio, Hammerson’s administration costs have increased and objectively are high,” Lighthouse stated.
“This is a matter Hammerson can rectify in the short term through disciplined management.”
Lighthouse added that Hammerson, led by CEO Rita-Rose Gagne, had shifted its focus “away from its core proposition as a retail REIT [real estate investment trust]”.
“Despite owning world-class malls which continue to perform well, Hammerson trades at a discount to net asset value of over 50%,” it added.
“Hammerson is comprised of three divisions: malls, Value Retail and developments. Lighthouse is of the view that Hammerson should dispose of its investment in Value Retail, right-size its exposure to developments and reduce administration costs significantly.”
Value Retail, during which Hammerson owns a giant stake, operates the Bicester Village flagship retail vacation spot, and is broadly anticipated by analysts to be offered within the coming years.
Lighthouse stated it will vote towards the re-election of “at least” two of Hammerson’s non-executives on the AGM in early May, and has nominated Nick Hughes and Craig Tate as alternative administrators.
A supply near Hammerson questioned the credentials of Mr Hughes and Mr Tate, saying they had been unlikely to be of the calibre required to serve on its board.
“Lighthouse’s proposals are unnecessary, distracting and value destructive. It is the Board’s view that neither nominee has the experience or skills that will be additive to our board and it would not be beneficial to appoint them,” a Hammerson spokesman stated.
“The board is confident that the strategy and leadership team is the right one and our performance clearly demonstrates strong strategic, operational and financial progress.
“2022 was one other yr of supply with like-for-like gross rental earnings of 8% and adjusted earnings up 60% year-on-year.
“2023 is another important year in the continuing transformation of the Group as we focus on execution and create a sustainable platform fit for the future.”
It will not be the primary time that Hammerson has confronted unrest from activist traders.
In 2018, Elliott Advisers took a stake within the firm and pushed for property gross sales, earlier than reaching a compromise deal over the possible reshaping of its board.
Hammerson subsequently raised £550m in a rights problem because it contended with the impression of the pandemic, and likewise its chairman and chief govt in brief order.
It has been engaged in a protracted programme of disposals which continued this week with the sale of a giant Parisian buying centre.
On Tuesday, Hammerson shares had been buying and selling at round 25.9p, valuing the corporate at £1.27bn.
Source: information.sky.com”