Developments. Retail parks and major developments. (UK, Ireland and France) February 2018

Transcription

1 Developments Retail parks and major developments (UK, Ireland and France) February 2018

2 01 Retail park developments Parc Tawe, Swansea Elliott s Field, Rugby Phase 2 Orchard Centre, Didcot 2

3 On-site developments overview Scheme (1) Lettable area m 2 Expected completion Value 31Dec 2017 m (2) Estimated cost to complete (3) m Estimated annual income (4) m Parc Tawe, Swansea 21,400 Q n/a Let (5) % Elliott s Field Shopping Park (Phase 2), Rugby 7,900 Q Orchard Centre, Didcot 8,700 Q Total 38, (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

4 Elliott s Field, Rugby Phase 2 Start on site Q Investment Rationale 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 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 Key facts Size 7,900m 2 Total development cost 31m Gross rental income at completion 3m Yield on cost 8% Pre-let % 100% Completed Q

5 Elliott s Field, Phase II Completed scheme 5

6 Elliott s Field, Phase II Completed scheme 6

7 Elliott s Field, Phase II Completed scheme 7

8 Elliott s Field, Phase II Catchment 8

9 Parc Tawe, Swansea Investment Rationale 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. Key facts Size 21,400m 2 Total development cost 16m Start on site Q 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. Gross rental income at completion 2m Yield on cost 11% Pre-let % 91% Completion Q

10 Parc Tawe 2016 aerial view 10

11 Parc Tawe The vision: transformed scheme through refurbishment and re-tenanting 11

12 Parc Tawe Transformed scheme through refurbishment and re-tenanting 12

13 Parc 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 13

14 Parc 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 14

15 Orchard Centre, Didcot Start on site Q Investment Rationale Didcot is strategically located between Reading, Oxford, Newbury and High Wycombe. The mixed-use development will add 8,700m 2 of shopping and leisure space to the existing 18,000m 2 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 Key facts Size 8,700m 2 Total development cost 44m Gross rental income at completion 3m Yield on cost 6% Pre-let % 62% Completion Q

16 Orchard Centre The vision 16

17 Orchard Centre The vision 17

18 Orchard Centre The vision 18

19 Didcot 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 Source: CACI 19

20 02 Major developments, UK and Ireland Brent Cross, London Croydon Town Centre, South London The Goodsyard, London Dundrum Phase II, Dublin Dublin Central, Dublin 20

21 Investment Rationale Having revolutionised retail when it opened in 1976, Brent Cross (84,000m 2 ) has become an iconic north London destination, with a catchment of 1.9 million Key facts Brent Cross, London The scheme is a joint venture between Hammerson 90,000m 2 (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 Size Total development cost m Gross rental income at completion 33.1m Yield on cost 5.3% (1) Earliest start 2018 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 Q Pre-let % 21

22 Brent Cross today Existing aerial view 22

23 Brent Cross The vision 23

24 Brent Cross The living bridge 24

25 Brent Cross Inside the mall 25

26 Brent Cross Floor plan upper ground level Anchor store Existing scheme Anchor store Extension Anchor store 26

27 Brent Cross Floor plan first floor Retail units Car parks F&B units 27

28 Croydon town centre, South Investment Rationale 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 Key facts London Total Estimated Phase cost I cost to complete to (1) [1] Existing assets Whitgift and Centrale are already owned by the Croydon Partnership, a joint venture between Hammerson (50%) and Westfield 1 Resolution to grant outline planning consent for the proposal was approved by Croydon Council in November 2017 Size 200,000m m Earliest start 2019 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 [1] Proposed acquisition by Unibail-Rodamco 28

29 Croydon town centre Primary North End entrance to scheme 29

30 Croydon: 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 people by 2021 Attract 1bn of retail spend GATWICK AIRPORT 40 minutes drive time 30 minutes public transport 30

31 The new scheme will sit at the heart of Croydon s regeneration St Michael s Square 5 2 Croydon town centre 6 5 Ruskin Square Saffron Square St Georges House 4 One Lansdowne Road 31 Morello London

32 The Goodsyard, London Earliest start 2019 (Phase I) Investment Rationale 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. Key facts Size 270,000m 2 Total Phase 1 I cost to complete [1] (1) m 32

33 The Goodsyard, London The vision 33

34 The Goodsyard, London The vision 34

35 The Goodsyard, London The vision 35

36 Hammerson Dublin platform 36

37 Investment Rationale Key facts Dundrum Town Centre Phase II Dundrum Town Centre Phase II is a prime six acre site adjacent to the existing centre Planning permission for 10,600m 2 scheme lapsed in 2013 (included 43,000m 2 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 Size 75,000m 2 Total Phase I cost to complete [1] Earliest start 2020 There is also potential to establish a Joint Venture with a residential specialist in order to deliver the development

38 The Dundrum Estate today Existing aerial view 38

39 Various mixed-use scheme options under assessment

40 Investment Rationale Key facts Dublin Central is a landmark 5.5 acre site in the heart of Dublin city located adjacent to the Henry Street retail core Dublin Central 122,000m 2 Size The extant planning permission for a122,000m 2 mixed use scheme (incl. 60,000m 2 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 Total Phase I cost to complete [1] Earliest start 2021 ACME Architects has been appointed to undertake a site analysis

41 Dublin Central Existing aerial view 200m frontage along O Connell Street Upper 41

42 03 Major developments, France Les 3 Fontaines, Cergy (Paris Region) Italie Deux extension, Paris 42

43 Les 3 Fontaines, Cergy (Paris Region) Investment rationale 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 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 Key facts Size 100,000m² 1 Total development cost 200m Earliest start 2018 The acquisition of the 11,000m 2 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 prelet 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 43

44 Les 3 Fontaines, Cergy (Paris Region) Paris and suburbs map 44

45 Les 3 Fontaines, today Existing aerial view Existing scheme 45

46 Les 3 Fontaines The vision 46

47 Les 3 Fontaines The vision 47

48 Italie Deux extension, Paris Investment Rationale 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 Key facts Size 6,400m² Total Phase I cost to complete [1] 38m The development will create 12 new units and1,100 m 2 of green roofing which will offer an educational garden and allotment area Earliest start 2018 A 900 m 2 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 Prêt-à- Manger, M&S Food have already signed and we are in advanced negotiations with three international brands 48

49 A long term strategy implemented since 1998 to grow the asset value 1976 Creation of GALAXY Creation of Grand Ecran 1998 Acquisition by Hammerson 2001 Heavy renovation 2004 Food Court 2006 Cinema closes 2007 Carrefour market 2012/2013 Renovation 2015/2018 Extension Theatre opening (2017) 49

50 Location and accessibility An iconic location in the heart of Paris benefitting from an outstanding accessibility Located in the heart of Paris 13 th 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,

51 Italie Deux extension The vision 51

52 Italie Deux extension The vision 52