Developments Retail parks and major developments (UK, Ireland and France) - February 2018 - Hammerson
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Developments Retail parks and major developments (UK, Ireland and France) February 2018
01 Retail park
developments
Parc Tawe, Swansea
Elliott’s Field, Rugby – Phase 2
Orchard Centre, Didcot
2
On-site developments overview
Scheme (1) Lettable Expected Value 31Dec Estimated Estimated Let (5)
area m2 completion 2017 cost to annual %
£m(2) complete(3) income(4)
£m £m
Parc Tawe, Swansea 21,400 Q1 2018 n/a 3 2 91
Elliott’s Field Shopping Park (Phase 2), 7,900 Q4 2017 37 4 3 100
Rugby
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 33
Investment Rationale Key facts
Building on the success of the first phase of
redevelopment at Elliott’s Field and the strong demand Size
from homeware retailers for space, planning consent
Elliott’s Field, Rugby
Phase 2
was granted in November 2016 for a 7,900m² second
phase adjacent to the existing shopping park, which
7,900m2
completed in October 2017. Total development cost
The scheme is currently 100% let by ERV to retailers £31m
including DFS, Furniture Village, Sofology, Oak
Furniture Land and Tapi. Gross rental income at completion
The Phase 2 development has achieved an interim
£3m
BREEAM ‘Outstanding’ accreditation and will be the Yield on cost
world’s first carbon neutral shopping park
8%
Pre-let %
Start on site
Q1 2017 100%
Completed
Q4 2017
4
Elliott’s Field, Phase II
Completed scheme
5
Elliott’s Field, Phase II
Completed scheme
6
Elliott’s Field, Phase II
Completed scheme
7
Elliott’s Field, Phase II
Catchment
8
Investment Rationale Key facts
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 Size
Parc Tawe, Swansea
20 minute radius.
21,400m2
The extension and refurbishment has transformed the park
Total development cost
and created a contemporary mixed retail and leisure
destination with modern facades, new public realm and
improved pedestrian links. £16m
Gross rental income at completion
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 £2m
the local area, including the planned St David’s city
Yield on cost
centre development.
The scheme is 91% pre-let with lettings secured including 11%
Iceland Food Warehouse, Office Outlet, Tenpin bowling, Pre-let %
Start on site Mothercare and Toys R Us. The redevelopment also
Q1 2016
features Hammerson’s second carbon neutral Costa Eco
Pod and the first Denny’s American Diner in the UK. 91%
Completion
Q1 2018
9
Parc Tawe
2016 aerial view
10Parc Tawe
The vision: transformed scheme through refurbishment and re-tenanting
11Parc Tawe
Transformed scheme through refurbishment and re-tenanting
12Parc Tawe ideally situated to benefit from local investment and development projects
1 The Castle Quarter
An £8million residential and leisure
development located adjacent to Parc
Tawe
2 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.
3 Swansea University campus
A £450million development is already
on site
4 Investment in transport links
Road, bus and railway stations
upgraded including the Boulevard
improvements which links Parc Tawe,
SA1 and the City Centre
13Parc Tawe is a catalyst for growth in a strong catchment
Key facts
Dwell time
72 mins
Average visits per year
56
Primary catchment population
147k
Secondary catchment population
136k
Tertiary catchment population
97k
14Investment Rationale Key facts
Didcot is strategically located between Reading,
Oxford, Newbury and High Wycombe. Size
Orchard Centre, The mixed-use development will add 8,700m2 of
shopping and leisure space to the existing 18,000m2
8,700m2
Didcot
Orchard Centre. Total development cost
Anchored by an M&S Food Hall, the expansion will
deliver an additional 21 new high street shops, seven
£44m
restaurants and cafes. Gross rental income at completion
Leases have been exchanged with H&M, River Island,
TK Maxx, Boots, Costa, Starbucks and Nando’s and
£3m
advanced discussions are in progress with a number of Yield on cost
other retailers.
Practical completion of the development is on target for
6%
March 2018 with the first retailers opening in Spring Pre-let %
Start on site
2018.
Q1 2017 62%
Completion
Q1 2018
15Orchard Centre
The vision
16Orchard Centre
The vision
17Orchard Centre
The vision
18Didcot is located in a wealthy and rapidly growing catchment
Affluent achievers in profile (compared to UK average of 22%)
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
Source: CACI 1902 Major developments,
UK and Ireland
Brent Cross, London
Croydon Town Centre, South London
The Goodsyard, London
Dundrum Phase II, Dublin
Dublin Central, Dublin
20Investment Rationale Key facts
Having revolutionised retail when it opened in 1976,
Brent Cross (84,000m2) has become an iconic north
Size
London destination, with a catchment of 1.9 million
Brent Cross, London The scheme is a joint venture between Hammerson 90,000m2
(41%) and Standard Life Investments and forms part
of the wider Brent Cross Cricklewood regeneration Total development cost (1)
plan with the extended shopping centre comprising
175,000m² of retail, catering and leisure use £475-550m
Detailed planning consent was granted in October
Gross rental income at completion
2017 and confirmation of CPO was received in
December 2017
£33.1m
The plans for Brent Cross include up to 150 new
retail stores and 50 new restaurants, state of the art Yield on cost
leisure and cinema offer, hotel accommodation and
improved public spaces including a new town square 5.3%
Earliest start
Laing O’Rourke has been chosen as the preferred Pre-let %
2018 contractor for the retail extension of Brent Cross
London. The appointment of a contractor for the
infrastructure works will be made in Q2 2018
21Brent Cross today
Existing aerial view
22Brent Cross
The vision
23Brent Cross
The living bridge
24Brent Cross
Inside the mall
25Brent Cross
Floor plan – upper ground level
Existing scheme
Anchor store
Anchor store
Extension
Anchor store
26Brent Cross
Floor plan – first floor
Retail units
Car parks
F&B units
27Investment Rationale Key facts
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 Size
fulfil Croydon’s potential as a strategic growth area
Croydon town 200,000m2
centre, South The wider large-scale regeneration of Croydon town
London centre is already underway with a number of schemes
Total Phase
Estimated I cost
cost to complete
to complete (1) [1]
already completed
£650-£700m
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
Earliest start The current plans include a new M&S anchor store and
incorporate three retail levels, over 300 shops,
2019 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
[1] Proposed acquisition by Unibail-Rodamco
28Croydon town centre
Primary North End entrance to scheme
29Croydon:
Connectivity and
catchment
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
GATWICK AIRPORT
people by 2021
40 minutes drive time
Attract £1bn of retail spend
30 minutes public transport
30The new scheme will sit at the heart of Croydon’s regeneration
1
2 St Michael’s Square
1
5
2
Saffron Square
6
Ruskin Square
Croydon
town
6
centre 5
4 3
St Georges House
3 4
One Lansdowne Road
31
Morello LondonInvestment Rationale Key facts
The Goodsyard is situated between Shoreditch and
Spitalfields, at the edge of the City
Size
The Goodsyard, The scheme is a joint venture between Hammerson
(50%) and Ballymore
270,000m2
London
Total Phase
Total Phase 1I cost
cost to
to complete
complete [1]
(1)
The planning application was called in by the Mayor of
London in September 2015 as it represented one of £140-160m
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
Earliest start
scheme.
2019 (Phase I)
32The Goodsyard, London
The vision
33The Goodsyard, London
The vision
34The Goodsyard, London
The vision
35Hammerson
Dublin platform
36Investment Rationale Key facts
Dundrum Town Centre Phase II is a prime six acre
site adjacent to the existing centre Size
Dundrum Town Planning permission for 10,600m2 scheme lapsed in 75,000m2
Centre Phase II 2013 (included 43,000m of retail) and
2
FaulknerBrowns Architects has been appointed to Total Phase I cost to complete [1]
Earliest start
conceive a new strategy for the site
The vision is for a mixed-use scheme as the site
2020
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
developmentThe Dundrum Estate today
Existing aerial view
38Various mixed-use scheme options under assessment
Investment Rationale Key facts
Dublin Central is a landmark 5.5 acre site in the
heart of Dublin city located adjacent to the Henry Size
Dublin Central
Street retail core
122,000m2
The extant planning permission for a122,000m2 Total Phase I cost to complete [1]
mixed use scheme (incl. 60,000m2 retail) expires in Earliest start
May 2022
2021
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 analysisDublin Central
Existing aerial view
200m frontage along O’Connell Street Upper 4103 Major developments,
France
Les 3 Fontaines, Cergy (Paris Region)
Italie Deux extension, Paris
42Investment rationale Key facts
Plans include the extension of the existing scheme to Size
100,000m²
establish the centre as the leading retail, dining and leisure
1
destination in the area
Les 3 Fontaines, Total development cost
Cergy A refurbishment of the current asset took place in 2016.
(Paris Region)
Main anchors include Inditex and H&M
£200m
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-
Earliest start let
2018 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
[1] After extension including co-owners
43Les 3 Fontaines, Cergy (Paris Region)
Paris and suburbs map
44Les 3 Fontaines, today
Existing aerial view
Existing scheme
45Les 3 Fontaines
The vision
46Les 3 Fontaines
The vision
47Investment Rationale Key facts
There is an opportunity to create a modern and
commercial façade for Italie Deux and attract new and
aspirational brands Size
Italie Deux
The extension will significantly enhance the centre
6,400m²
extension, Paris
enabling it to capitalise on a wider catchment Total Phase I cost to complete [1]
The project was selected by the City of Paris as part of £38m
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,
Earliest start Marseilles
2018 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
48A long term strategy implemented since 1998 to grow the asset value
1976 1992 1998 2001 2004 2006 2007 2015/2018
2012/2013
Creation of Creation of Acquisition Heavy Food Cinema Carrefour Renovation
Extension
GALAXY 2 Grand Ecran by Hammerson renovation Court closes market Theatre opening
(2017)
49Location and accessibility
An iconic location in the heart of Paris benefitting from an outstanding 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
(1) SAD study, 2016 50Italie Deux extension
The vision
51Italie Deux extension
The vision
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