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Hammerson boss calls end of property slump
22 Jun 2009
The chief executive of property giant Hammerson today said the two-year market slump may be near an end.
John Richards, whose company owns stakes in the Spitalfields Bishop's Square office development and the Bull Ring shopping centre in Birmingham, said rents were now falling more slowly, having a follow-on effect on property prices.
He told Bloomberg: "We will see values stabilise. The occasions of tenant default or delinqunecy are going to continue to be rare."
Richards ruled out selling its most recent projects, despite having opened them just as the market turned for the worst.
In March, he launched a £584 million rights issue then sold 75% of Bishop's Square to shore up Hammerson's finances.
He admitted the timing had been wrong but added: "From where we are now, that kind of stuff is the best recovery stock available. Our strategy is not to sell."
Reader views (1)
The slump was near its end...now rising rates, unemployment and tighter lending criteria will cause a second set of problems. The recoverh is 18m away and will take 15 years for prices to bounce back up by 35 or 40%
- Mortgage Broker N3, London, England, 22/06/2009 11:58
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