Hammerson launches equity raise to help fund Manchester Arndale acquisition

Hammerson said it intended to raise 10% of existing issued share capital (c.£190m) of the deal by issuing new ordinary shares, which will commence on August 4.

The landlord announced its acquisition of the stake in Hammerson this morning, alongside upgrading its financial outlook for the full 2026 financial year.

Hammerson said it had a “strong half” with total net rental income (NRI) up 40%, and said it expected a 3% contribution from Manchester Arndale to NRI in the second half.

It said FY26 earnings are now expected to be c.£132m, c.27% growth year-on-year.

Hammerson said the acquisition of Manchester Arndale gave it “compelling income and value creation opportunities” by combining the centre’s “position at the heart of the city centre” with an elevated brand mix and integrating the landlord’s “integrated platform”.

Hammerson chief executive Rob Wilkinson said of the Manchester Arndale acquisition: “This is another important step in our strategy to increase scale through acquiring high-quality, retail-led destinations.

“Manchester is one of Europe’s most dynamic and fastest-growing urban economies, benefiting from strong demographics, excellent connectivity and the largest retail catchment outside London. Manchester Arndale sits at the heart of this exceptional city and has established itself as a premier retail destination, attracting more than 45 million visitors each year.

“Ownership of this prime asset allows us to further strengthen our position in one of the continent’s leading cities. The transaction will be immediately earnings accretive, and we see a clear path to income and value creation, leveraging Hammerson’s platform to enhance the destination and deliver attractive long-term returns for our shareholders.”

On the broader results, he added: “Our strategy is focused on leveraging Hammerson’s unique platform to deliver sustainable growth. We continue to drive outperformance across our destinations, unlock value from our strategic land, and invest in a disciplined manner to deliver further growth. We have made excellent progress executing these three strategic priorities in the first half, resulting in a strong performance and confident outlook.

“Hammerson’s strategy is now naturally broadening to external acquisitions. Manchester Arndale is fully in line with our criteria for increasing our scale, and is a retail-led destination at the heart of one of Europe’s leading cities, benefiting from attractive demographics and a positive economic outlook. The Arndale represents Hammerson’s first major external acquisition in over a decade.

“What was already proving to be a strong underlying performance this year is now further enhanced by today’s acquisition. We are now guiding FY26 earnings to be 27% greater than FY25, strengthening our path of sustainable growth, and underpinning a new medium-term outlook.”