It expects that rent roll to be boosted over time by government action to loosen rent caps, which Hammerson said “suggests a fairer balance of being able to achieve future inflationary rental growth without an artificial cap”.
Hammerson’s core business is retail real estate but the Ironworks block of 107 one and two-bed units being built beside the shopping centre in Dundrum village is among a number of initiatives to develop more diverse income streams, including another large residential development at The Oracle shopping centre in Reading in the UK.
In Ireland, Hammerson manages and owns 50pc stakes in each of The Ilac Centre in Dublin city centre and Swords Pavilions, as well as Dundrum Town Centre. Passing rents across the three properties totalled £38.3m (€44.3m) at the end of June last.
It also owns outright the old Carlton cinema site on Dublin’s O’Connell Street, a landmark but long-stalled redevelopment site, which Hammerson is understood to be considering selling.
The group reported results for the first half of 2025 on Thursday that included the first increase in the value of its portfolio since 2017, drawing a line under a period of big declines for the commercial property sector as it dealt with the impact of Covid and a shift to online shopping.
Occupancy in Ireland is now 98pc, an indication of strong demand for retail space.
The company’s portfolio of properties in the UK, Ireland and France was valued 11pc higher in the first half of the year, driven by rental growth of 5pc on a like-for-like basis. In Ireland, it reported like-for-like values for its portfolio up 2pc to £549.6m.
Hammerson’s leasing activity here in the first half of 2025 included signing a 38,000 sq ft flagship store “upsize” with Zara at Dundrum, renewing a lease with Hollister and agreeing a deal with Wagamama to bring a new food and beverage offer to the Irish mix.
Hammerson said all of these deals were concluded “comfortably ahead” of previous passing rent. In the Ilac Centre, it signed Danish cosmetics retailer Normal into the former River Island unit.
Meanwhile, Hammerson plans to raise as much as 10pc of its existing share capital through a placing to fund the buyout of the remaining stakes that it does not already own in two Birmingham shopping centers: the Bullring and Grand Central.
It plans to buy Canada Pension Plan Investment Board’s 50pc interests in each for a combined £319m.
Hammerson’s shares rose as much as 5pc on Thursday in London. The firm also raised its full-year earnings guidance following better-than-expected rental growth and the proposed acquisitions.
It caps a major turnaround by the company, overseen by chief executive officer Rita-Rose Gagne, who announced earlier this year that she intended to retire half a decade after taking the helm.
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