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QuotedData’s morning briefing 22 April 2021

Hammerson sells retail park portfolio for £400m

In QuotedData’s morning briefing 22 April 2021:

  • Hammerson (HMSO) has further reduced its debt having exchanged unconditional contracts on the portfolio sale of its seven retail park assets to Brookfield for £330m cash proceeds. This represents an 8% discount to the 31 December 2020 book value of £357m and an 8.6% net initial yield. This transaction concludes Hammerson’s exit from the UK retail parks sector. Hammerson has also recently disposed of Brent South Shopping Park (£22m at Hammerson share) and its minority interests in Nicetoile and Espace Saint Quentin for £73m, these were in line with 31 December 2020 valuations. The transaction announced today takes the total gross proceeds of Hammerson’s disposals in 2021 to £403m at an average discount to 31 December 2020 valuations of 6%.
  • Frustrated Invesco Income Growth (IVI) sellers may weigh on its discount. 27,293,289 shares elected for the cash exit option in connection with its merger with Invesco Select. 31,059,677 shares opted to rollover into the merged vehicle. However, the cash option is limited to 30% of shares in issue, and so 40,847,077 shares will be rolled over and 17,505,889 shares will be re-designated as B shares and cashed in. [The holders of 9,787,400 shares that wanted cash but didn’t get it may now try to sell their shares in the market. This is not an auspicious start for the merged vehicle.]
  • Gresham House Energy Storage (GRID) has completed its acquisition of the c.30MW battery project located near Wester Dechmont, Livingston in West Lothian, Scotland (Byers Brae). The total price was £15.6m (plus up to £0.35m of deferred contingent consideration). Byers Brae is a battery-only site with a c.30MW/30MW export/import capacity which commenced commercial operations in March 2021. The project is expected to generate revenues primarily from asset optimisation (whereby it imports and exports power to earn income from the wholesale market and the National Grid administered balancing mechanism), together with frequency response services. It is currently providing dynamic containment services to National Grid.
  • Highbridge Tactical Credit is in wind down mode. Over the 12 months to 31 December 2020, the NAV per share increased to 250.1p from 212.3p, a 17.78% increase.
  • Several property companies updated on rent collection rates for the second quarter of 2021, as follows:
    • CLS Holdings (CLI), which owns offices in the UK, France and Germany, has received 93% of rents for the second quarter of 2021 (increasing to 95% with monthly payments to come). Its first quarter collection rate has improved to 98%.
    • LXI REIT (LXI) has reported rent collection for the second quarter of 99%. It said this will increase to 99.8% on receipt of short-term rent deferrals agreed with tenants.
    • Town Centre Securities (TOWN), which owns property in Leeds, Manchester, Glasgow and London as well as car parks, has collected 80% of rent for the second quarter of 2021, with a further 12% agreed to be deferred. For the quarters affected by the pandemic (Q2 2020 to Q2 2021), the group has received 86% of the £30.4m total rent billed with a further 3% deferred.
    • AEW UK REIT said 84% of rent has been collected or is expected to be received under monthly payment plans prior to quarter end.
  • Schiehallion raised $700m from its C share issue and says the fundraise was significantly oversubscribed.

We also have more news on UIL’s new zero issue, results from Martin Currie Global Portfolio, more detail on the proposed merger of City Merchants High Yield and Invesco Enhanced Income and news of a planned fundraise by Polar Capital Global Financials.

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