Retail property giant Hammerson is considering a rights issue and is in talks about an asset sale as it seeks to recover from the impact of the coronavirus pandemic.

Hammerson, owner of shopping centres such as Birmingham’s Bullring and London’s Brent Cross, did not reveal how much equity it may raise, but Sky News has reported it may be as much as £600m.

As well as confirming that it is pondering a rights issue, Hammerson said it is in advanced discussions about the possible sale of its 50% stake in VIA Outlets, which runs premium outlet centres in Europe.

Like other retail property businesses, Hammerson has been hit hard by the Covid outbreak. During lockdown many stores were closed, with many retailers withholding or unable to pay rent.

The coronavirus turmoil came as the retail property industry was already in the midst of restructuring. Rising online sales contributed to a decline in property valuations.

Hammerson said today that “following the reopening of its flagship destinations across Europe, footfall and sales continue to improve”. It reported that third-quarter rent collection in the UK, excluding monthly payments and deferrals, “has increased to over 30%”.

Hammerson said it “continues to take proactive measures relating to the management of its cost base and cash flow”. It has secured approval for up to £300m under the Covid Corporate Financing Facility from the Bank of England.