Hammerson (HMSO) releases a first-quarter trading update on Wednesday (23 April) and the property group's decision to switch out of London offices - to concentrate on quality retail outlets - appears to be paying off. That's because there's evidence that the improving economy is generating more interest from quality retailers, keen to exploit consumer patronage of retail parks. For Hammerson, this means real scope to meaningfully increase rental rates.
Completed developments so far this year include the Monument Mall in Newcastle, where most of the projected rental income has already been secured, while next month should see completion of a 61,000 square metre shopping and leisure complex in Marseille. Regeneration of the French port is attracting more tourists and several upmarket retailers have already taken flagship sites. Other schemes include a joint venture with Westfield to regenerate the retail heart of Croydon, while a planning application to develop a 4.3-hectare site in Shoreditch is currently under way.
