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Hammerson director tops up holding

The purchases were made a week after the retail landlord announced a rights issue and European disposals
August 19, 2020

Hammerson (HMSO) non-executive director Desmond de Beer has boosted his holding in the troubled retail landlord, just a week after it announced a rights issue and plans to offload its stake in European retail outlets.

IC TIP: Sell at 48p

Mr de Beer purchased £3.3m in shares in the group via Optimprop and Delsa Investment, part of a trust structure of which Desmond de Beer is one of the ultimate beneficiaries, boosting his stake to 0.92 per cent.  

The 52p purchase price represents a decline of more than three-quarters over the past 12 months, as the coronavirus pandemic has exacerbated structural challenges facing the retail sector. Hammerson, owner of Birmingham’s Bull Ring shopping centre and Bicester Village retail outlet in Oxfordshire, has been battling falling plummeting asset valuations, which led to the group’s loan-to-value ratio rising to 51 per cent at the end of June, from 45 per cent at the same time in 2019. 

The retail landlord suffered a 28 per cent shortfall in rent due for the first half, which resulted in net rental income falling by more than a quarter during the period, while only 34 per cent of rent due in respect of the third quarter was collected by the start of August. 

At the time of the group’s results, chief executive David Atkins said it intended to introduce a new leasing model, which will include more flexible leases, rebased rents at more affordable levels and indexation replacing the existing rent-review system. It will also include an omnichannel top-up element, which could include a turnover-based rent with an adjustment for the role of 'click and collect' in store.

Buys      
CompanyDirector/PDMRDateNo. of sharesPrice (p)Aggregate value (£)Comments
CentricaScott Wheway (ch)12 Aug 20100,00048.848,799 
CentricaChristopher O'Shea13 Aug 2060,85048.429,426Average price
CentricaChristopher O'Shea13 Aug 2039,15047.4218,565

Purchased by PCA

HammersonDesmond de Beer13 Aug 203,000,00052.661,579,869

Residual interest 0.923%, converted from ZAR

HammersonDesmond de Beer13 Aug 20300,00052.37157,103 
HammersonDesmond de Beer13 Aug 203,000,00052.661,579,869 
GlanbiaSiobhán Talbot13 Aug 2010,000840.684,060

Converted from €

reach4entertaiment enterprisesMarc Boyan (ceo)13 Aug 2034,013,3350.348118,366 
Just GroupJohn Hastings-Bass (ch)13 Aug 2098,20056.7555,729 
Ninety OneHendrick du Toit/Kim McFarland14 Aug 2035,001210.8373,791

Purchased by PCA

Hill & SmithHannah Nichols (cfo)14 Aug 201,4781,35319,997 
Jupiter Fund ManagementAndrew Formica (ceo)14 Aug 20230,000214.3492,890 
Condor GoldJim Mellon14 Aug 20125,00050.563,125 
Ninety OneHendrick du Toit/Kim McFarland17 Aug 20100,000207.94207,939 
Spirax-SarcoJane Kingston18 Aug 201,32010,742141,794 
PrudentialAmy Yip18 Aug 202,5001,24030,988 
easyJetPeter Bellew (coo)18 Aug 208,500552.846,988 
Sells      
CompanyDirector/PDMRDateNo. of sharesPrice (p)Aggregate value (£)Comments
Legal & GeneralLaura Mason13 Aug 209,820236.9623,269 
AJ BellAndrew Bell (ceo)14 Aug 201,770,751437.777,751,756

Residual interest 23.58%

AJ BellLeslie Platts (ch)14 Aug 20177,075437.77775,174

Residual interest 0.1%

RenishawDaniel Deer14 Aug 205,3504,850259,496 
WhitbreadMark Anderson17 Aug 203,2102,38776,623 
ZotefoamsDavid Stirling (ceo)17 Aug 2055,000404222,200 
William HillCrispin Nieboer18 Aug 2020,000146.529,300