The co-owner of Dundrum Town Centre has seen off a €5.7 billion takeover bid

UK property giant Hammerson says the French approach ‘significantly undervalued’ the company.

By Sarah Harford Reporter, Fora

FRENCH MALL OPERATOR Klépierre has abandoned its €5.7 billion takeover bid for property giant Hammerson, which has a stake in a string of Dublin shopping centres.

UK-based Hammerson, which co-owns Dundrum Town Centre, the Ilac Centre and the Pavillion Shopping Centre in Swords, rejected a new proposal from the retail firm earlier this week.

It stated that the offer “very significantly undervalued” the company, its portfolio and the opportunities it has for future value creation.

In a statement released today, Klépierre said that it no longer intends to make an offer for Hammerson after the company failed to provide “any meaningful engagement” with its proposals.

Klépierre’s most recent offer was 3.3% higher than its initial bid, which was rejected by Hammerson last month.

David Tyler, chairman of Hammerson, said that the board “considered the revised proposal from Klépierre carefully” but that it “continues very significantly to undervalue the company”.

Irish business

The Irish market is a significant business segment for Hammerson, which bought a major loan portfolio from Nama in late 2015, allowing it to take joint ownership of several retail sites.

In 2017, the company reported a 6.8% increase in adjusted profits, driven by retail sales growth in Ireland and new lettings at Dundrum Town Centre. Like-for-like net rental income in its Irish portfolio was up by 7.4% last year.

Klépierre’s decision to walk away from a takeover of the business will now allow Hammerson to pursue its acquisition of Intu, which operates a number of shopping centres in the UK including Manchester’s Trafford Centre.

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