In terms of its Irish assets, Hammerson’s full-year results yesterday were something of a mixed bag.
At a headline level, the value of its Irish assets dropped by 13.3 per cent to £522 million (reflecting wider developments on valuations in the Irish retail market), while its net rental income from the Dundrum Town Centre declined to £48.3 million (€58.4 million) from £52.6 million a year earlier.
Hammerson’s accounts show Dundrum generated a loss of £105.2 million, but this was due to a £141 million write down in the valuation of the asset during the year.
Hammerson jointly owns the Dundrum Town Centre with German insurer Allianz, along with the nearby Dundrum shopping centre, which is slated for redevelopment.
On a more positive note, Hammerson reported that in the final quarter of the year footfall in Ireland was up 16 per cent on the previous three-month period.
The UK property group said it invested €31 million at Dundrum from 2019 to 2023 to “re-anchor the destination” around Brown Thomas and Penneys, who between them took up the space once occupied by British department store group House of Fraser.
[ Dundrum Town Centre owner Hammerson posts 13.3% fall in Irish asset valueOpens in new window ]
The investment, which also helped to attract Dunnes Stores and Nike to Dundrum, generated €70 million of rent contracted to the first break and an internal rate of return of 20 per cent. it said.
“There is a promising pipeline for 2025, including the completion of our 122-unit Ironworks residential project, a first for a retail-anchored destination,” added Hammerson, which also part owns the Ilac Centre in Dublin city and the Pavilions retail complex in Swords.
The results show that Inditex generates £1.6 million in rent for Hammerson in Ireland, followed by Brown Thomas at £1.5 million. Marks & Spencer pays £1.1 million while Penneys and Dunnes Stores both pay £900,000 each.
There was no mention in the results of An Bord Pleanála’s recent decision to refuse permission to a Hammerson subsidiary for an 881-unit residential scheme as part of a wider €466 million development on the site of the Dundrum shopping centre.
Following almost three years of deliberations and upwards of 700 objections, the board rejected the plan after raising concerns around its architectural impact, flooding, and living conditions for future occupiers. It’s now back to the drawing board for Hammerson and Allianz.
