Retail landlord Hammerson (HMSO) is starting to benefit from a renaissance in the UK retail sector, with total rent from new group lettings up 37 per cent in the three months to November.
Long-term group leases have been struck 9 per cent above estimated retail value, and 8.5 per cent ahead of previous passing rents, both reflecting continued retailer confidence and appetite for strong retail space. UK shopping centre sales in the three-month period grew by 2.8 per cent, while significant new lettings were made including a 20,000 sq ft menswear store at the Bullring in Birmingham and a new Jessop's store in the Oracle.
Overall occupancy remains high at 96.7 per cent, with units in administration representing just 1.2 per cent of passing rent, and unoccupied units accounting for 0.6 per cent, down from 0.8 per cent a year ago. And while French shopping centres showed a positive footfall uplift of 0.5 per cent, sales in the first nine months of the year were down 2.8 per cent.
