development pipeline july 2017…centre development. the scheme is 91% pre-let with lettings secured...

Developments Retail parks and major developments

(UK, Ireland and France)

February 2018

Retail park developments

Parc Tawe, Swansea

Elliott’s Field, Rugby – Phase 2

Orchard Centre, Didcot

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On-site developments overview

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Scheme (1) Lettable area m2

Expected completion

Value 31Dec 2017 £m(2)

Estimated cost to complete(3)

£m

Estimated annual income(4)

£m

Let (5)

%

Parc Tawe, Swansea 21,400 Q1 2018 n/a 3 2 91

Elliott’s Field Shopping Park (Phase 2), Rugby

7,900 Q4 2017 37 4 3 100

Orchard Centre, Didcot 8,700 Q1 2018 29 12 3 62

Total 38,000 19 8

(1) Group ownership 100% for all on-site schemes

(2) Values are not included for extension projects which are incorporated into the value of the existing property

(3) Incremental capital cost including capitalised interest

(4) Incremental income net of head rents and after expiry of rent-free periods

(5) Let or in solicitors' hands by income at 20 February 2018

Investment Rationale Key facts

Size

Total development cost

Gross rental income at completion

Yield on cost

Pre-let %

7,900m2

£31m

£3m

8%

100%

Elliott’s Field, Rugby Phase 2

Building on the success of the first phase of redevelopment at Elliott’s Field and the strong demand from homeware retailers for space, planning consent was granted in November 2016 for a 7,900m² second phase adjacent to the existing shopping park, which completed in October 2017.

The scheme is currently 100% let by ERV to retailers including DFS, Furniture Village, Sofology, Oak Furniture Land and Tapi.

The Phase 2 development has achieved an interim BREEAM ‘Outstanding’ accreditation and will be the world’s first carbon neutral shopping park

Start on site

Completed

Q1 2017

Q4 2017

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Elliott’s Field, Phase II

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Completed scheme


6

Completed scheme


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Completed scheme


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Catchment


Size



Yield on cost

Pre-let %

21,400m2

£16m

£2m

11%

91%

Parc Tawe, Swansea

Parc Tawe is an easily accessible and established retail and leisure park in the heart of Swansea with 750 free car parking spaces and a population of 214,000 within a 20 minute radius. The extension and refurbishment has transformed the park and created a contemporary mixed retail and leisure destination with modern facades, new public realm and improved pedestrian links. Ideally located at the gateway to the city centre, the redeveloped Parc Tawe retail park will act as a catalyst for future growth, supported by investment taking place in the local area, including the planned St David’s city centre development. The scheme is 91% pre-let with lettings secured including Iceland Food Warehouse, Office Outlet, Tenpin bowling, Mothercare and Toys R Us. The redevelopment also features Hammerson’s second carbon neutral Costa Eco Pod and the first Denny’s American Diner in the UK.

Start on site

Completion

Q1 2016

Q1 2018

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Parc Tawe

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2016 aerial view

Parc Tawe

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The vision: transformed scheme through refurbishment and re-tenanting

Parc Tawe

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Transformed scheme through refurbishment and re-tenanting

Parc Tawe ideally situated to benefit from local investment and development projects

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SA1 Swansea Waterfront A transformation of the Old Dockyard into a vibrant residential and retail area. Initial phase completed and over 2,000 new homes planned.

The Castle Quarter An £8million residential and leisure development located adjacent to Parc Tawe

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Swansea University campus A £450million development is already on site

Investment in transport links Road, bus and railway stations upgraded including the Boulevard improvements which links Parc Tawe, SA1 and the City Centre

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3

4

Key facts

72 mins

56

147k

136k

97k

Parc Tawe is a catalyst for growth in a strong catchment

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Dwell time

Average visits per year

Primary catchment population

Secondary catchment population

Tertiary catchment population


Size



Yield on cost

Pre-let %

8,700m2

£44m

£3m

6%

62%

Orchard Centre, Didcot

Didcot is strategically located between Reading, Oxford, Newbury and High Wycombe. The mixed-use development will add 8,700m2 of shopping and leisure space to the existing 18,000m2

Orchard Centre. Anchored by an M&S Food Hall, the expansion will deliver an additional 21 new high street shops, seven restaurants and cafes. Leases have been exchanged with H&M, River Island, TK Maxx, Boots, Costa, Starbucks and Nando’s and advanced discussions are in progress with a number of other retailers. Practical completion of the development is on target for March 2018 with the first retailers opening in Spring 2018.

Start on site

Completion

Q1 2017

Q1 2018

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Orchard Centre

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The vision

Orchard Centre

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The vision

Orchard Centre

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The vision

Didcot is located in a wealthy and rapidly growing catchment

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Affluent achievers in profile (compared to UK average of 22%)

Source: CACI

Affluent Achievers comprise 30% of the profile compared to UK average of 22% £15 million catering market potential £71 million comparison good market potential. 41% uplift between 2015-2017

Major developments, UK and Ireland Brent Cross, London

Croydon Town Centre, South London

The Goodsyard, London

Dundrum Phase II, Dublin

Dublin Central, Dublin

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02


Size



Yield on cost

Pre-let %

Brent Cross, London 90,000m2

£475-550m

£33.1m

5.3% Earliest start

2018

21

(1)

Having revolutionised retail when it opened in 1976, Brent Cross (84,000m2) has become an iconic north London destination, with a catchment of 1.9 million

The scheme is a joint venture between Hammerson (41%) and Standard Life Investments and forms part of the wider Brent Cross Cricklewood regeneration plan with the extended shopping centre comprising 175,000m² of retail, catering and leisure use

Detailed planning consent was granted in October 2017 and confirmation of CPO was received in December 2017

The plans for Brent Cross include up to 150 new retail stores and 50 new restaurants, state of the art leisure and cinema offer, hotel accommodation and improved public spaces including a new town square Laing O’Rourke has been chosen as the preferred contractor for the retail extension of Brent Cross London. The appointment of a contractor for the infrastructure works will be made in Q2 2018

Brent Cross today

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Existing aerial view

Brent Cross

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The vision

Brent Cross

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The living bridge

Brent Cross

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Inside the mall

Brent Cross

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Floor plan – upper ground level

Existing scheme

Anchor store

Anchor store

Anchor store

Extension

Brent Cross

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Floor plan – first floor

F&B units

Retail units

Car parks


Size

Total Phase I cost to complete [1]

200,000m2

£650-£700m

Croydon town centre, South London Estimated cost to complete (1)

28 [1] Proposed acquisition by Unibail-Rodamco

The proposed scheme will bring an outstanding retail and leisure development to the centre of Croydon, which has a catchment of 1.1 million people, helping to fulfil Croydon’s potential as a strategic growth area

The wider large-scale regeneration of Croydon town centre is already underway with a number of schemes already completed Existing assets Whitgift and Centrale are already owned by the Croydon Partnership, a joint venture between Hammerson (50%) and Westfield1 Resolution to grant outline planning consent for the proposal was approved by Croydon Council in November 2017

The current plans include a new M&S anchor store and incorporate three retail levels, over 300 shops, restaurants and cafes, improved leisure and public realm, and additional homes Subject to detailed planning consent and completion of agreements with anchor tenants, the earliest start is 2019

Earliest start

2019

Croydon town centre

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Primary North End entrance to scheme

Croydon: Connectivity and catchment

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Opportunity to cover South

London catchment

Trade area covers affluent

regions of Kent, Surrey and

South London

Total catchment forecast

increase of 40% to over 2m

people by 2021

Attract £1bn of retail spend

GATWICK AIRPORT

40 minutes drive time

30 minutes public transport

The new scheme will sit at the heart of Croydon’s regeneration

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4

3

Croydon town centre

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St Michael’s Square

Saffron Square

Morello London

One Lansdowne Road

Ruskin Square

St Georges House

5

4

3

2

6

1


Size


The Goodsyard, London

270,000m2

£140-160m

The Goodsyard is situated between Shoreditch and Spitalfields, at the edge of the City

The scheme is a joint venture between Hammerson (50%) and Ballymore

The planning application was called in by the Mayor of London in September 2015 as it represented one of London’s strategic mixed-use sites Determination of the scheme was then deferred in April 2016 to allow further consultation with the GLA’s planning officers This work is progressing and we are now targeting a submission to the GLA of the amendments necessary by the end of 2018 to allow the Mayor to determine the scheme.

Total Phase 1 cost to complete (1)

32

Earliest start

2019 (Phase I)

The Goodsyard, London The vision

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34


35

36

Hammerson Dublin platform


Size


Dundrum Town Centre Phase II

75,000m2

Earliest start

2020

Dundrum Town Centre Phase II is a prime six acre site adjacent to the existing centre Planning permission for 10,600m2 scheme lapsed in 2013 (included 43,000m2 of retail) and FaulknerBrowns Architects has been appointed to conceive a new strategy for the site

The vision is for a mixed-use scheme as the site characteristics are considered ideal for housing due to the:

• Desirable suburban location • Strong public transport connectivity • Good local amenity provision

There is also potential to establish a Joint Venture with a residential specialist in order to deliver the development

The Dundrum Estate today

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Various mixed-use scheme options under assessment


Size


Dublin Central 122,000m2

Earliest start

2021

Dublin Central is a landmark 5.5 acre site in the heart of Dublin city located adjacent to the Henry Street retail core

The extant planning permission for a122,000m2 mixed use scheme (incl. 60,000m2 retail) expires in May 2022 The site is of historical importance and a scheme sympathetic to this is envisaged, potentially with amendments to the extant planning consent ACME Architects has been appointed to undertake a site analysis

Dublin Central

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200m frontage along O’Connell Street Upper

Major developments, France

Les 3 Fontaines, Cergy (Paris Region)

Italie Deux extension, Paris

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03


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Size

Key facts


Plans include the extension of the existing scheme to establish the centre as the leading retail, dining and leisure destination in the area A refurbishment of the current asset took place in 2016. Main anchors include Inditex and H&M Les 3 Fontaines is ideally located in a large catchment area of an estimated 1.2 million people. The extension project is part of plans for the wider regeneration of the area

The acquisition of the 11,000m2 shopping centre Cergy 3 adjoining Les 3 Fontaines took place in October 2017 Consent and building permits have been obtained and agreements with co-owners Auchan have been reached. There has also been good pre-letting with 22% already pre-let The extension will enhance the overall scheme that will become the third trophy asset in our French portfolio alongside Les Terrasses du Port and Italie Deux

Investment rationale

100,000m²1

£200m

Earliest start

2018

[1] After extension including co-owners


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Paris and suburbs map

Les 3 Fontaines, today

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Existing scheme

Les 3 Fontaines The vision

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Les 3 Fontaines The vision

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Size


Italie Deux extension, Paris

There is an opportunity to create a modern and commercial façade for Italie Deux and attract new and aspirational brands

The extension will significantly enhance the centre enabling it to capitalise on a wider catchment

The project was selected by the City of Paris as part of the ‘Reinventing Paris’ tender in 2016

The development will create 12 new units and1,100 m2 of green roofing which will offer an educational garden and allotment area

A 900 m2 event area will be operated by Noctis, the existing operators of the rooftop at Les Terrasses du Port, Marseilles

Land acquisition is expected by March 2018. Prêt-à-Manger, M&S Food have already signed and we are in advanced negotiations with three international brands

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Earliest start

2018

6,400m²

£38m

A long term strategy implemented since 1998 to grow the asset value

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2007 Carrefour market

2012/2013 Renovation

1976 Creation of GALAXY 2

1992 Creation of Grand Ecran

2001 Heavy renovation

1998 Acquisition by Hammerson

2004 Food Court

2006 Cinema closes

2015/2018 Extension Theatre opening (2017)

Location and accessibility

Located in the heart of Paris – 13th arrondissement

Strong and affluent catchment area with 765,500

residents (1)

Iconic and well-known building amongst Parisians

Excellent public transport links:

• 3rd biggest metro station in Paris with 3 metro lines

• 6 bus lines

Immediate road links:

• 5 min from Paris ring road

• 15 min from Orly airport

50 (1) SAD study, 2016

An iconic location in the heart of Paris benefitting from an outstanding accessibility

Italie Deux extension

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The vision

Italie Deux extension

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The vision

development pipeline july 2017…centre development. the scheme is 91% pre-let with lettings secured...

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