Published: Thu, December 07, 2017
Business | By Max Garcia

Hammerson to buy smaller rival Intu Properties for around 3.4 billion pounds

Hammerson to buy smaller rival Intu Properties for around 3.4 billion pounds

He's spent his life in shopping centres, doing all the usual stuff: going up the wrong escalators, knocking over invisible three-year-olds and walking into airless shops, staring blankly for a bit, and walking out again.

Hammerson chairman David Tyler said: "This transaction will deliver real value for shareholders".

Hammerson has reached an all share agreement for Intu Properties, which runs Gateshead's MetroCentre and Newcastle's Eldon Square.

John Whittaker, deputy chairman of Intu, will become deputy chairman of the enlarged group and John Strachan, chairman of Intu, will join the board of the enlarged group as senior independent director.

Intu is now the owner of the Lakeside shopping centre in Essex and the Trafford Centre in Manchester. Shareholders will vote on the deal next year.

Upon completion, Hammerson is hoping to tap into new, high-value markets such as those in growing economies like Ireland and Spain, while using extra cash to expand its Premium Outlets platform.

The enlarged group will retain the Hammerson name, and dominate with a 55% shareholder stake in the enlarged business.

Atkins said: "This marks an exciting milestone in the history of Hammerson".

Hammerson said it had identified £2bn worth of properties in both companies' portfolios it planned to dispose of "over the short to medium term".

In August Intu completed a £488 million refinancing deal to enable its full ownership of Merry Hill, where is is planning a new cinema and restaurants.

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