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Hammerson initiates strategy review

Hammerson has drafted in the global management consultant firm McKinsey & Co as the shopping centre owner prepares to launch a new strategy to its shareholders next month.

The Times reported today that McKinsey was appointed a month ago following the failed £3.4bn takeover of rival UK shopping centre developer Intu Properties.

The newspaper said that, after the deal failed, Hammerson had sought to reassure shareholders that heightened risks to the Intu acquisition outweighed the longer-term benefits of the proposed takeover.

Hammerson chief executive David Atkins told The Times: “Hammerson is an ambitious company with a disciplined approach to the pursuit of compelling investments to strengthen its portfolio.

“We have a clear strategy that has delivered consistent, strong returns on a standalone basis and we look forward to updating the market in the near term on our plans to accelerate the delivery of further value for shareholders.”

Hammerson said it would initiate a review of its options to speed up the delivery of value, including potentially reassessing “appropriate disposals”, investing in higher-growth retail segments, cutting costs and returning cash to shareholders, The Times reported. Next month Hammerson is expected to detail the outcome of its review.

It is believed that McKinsey is helping provide Hammerson with a global view of emerging future retail and consumer trends to help guide and support its review in a difficult retail climate.

Drapers has contacted Hammerson and McKinsey for comment.

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