Hammerson to raise up to 190 million pounds to fund Manchester Arndale acquisition

Real estate giant Hammerson has announced plans to raise up to 10 percent of its existing issued share capital, worth approximately 190 million pounds, to partly fund its recently completed acquisition of a 50 percent stake in Manchester Arndale.

The capital raise follows the property group's purchase of the interest from Palma Arndale BidCo for 218 million pounds.

The fundraising will include an institutional placing, a UK retail offer and a director subscription, with chief executive officer Rob Wilkinson and chief financil officer Hans Bakker among those intending to participate.

Hammerson said the acquisition significantly expands its presence in one of its core UK markets. Manchester Arndale attracts around 45 million visitors annually and serves a catchment of 6.4 million people, the largest outside London.

In a statement, Wilkinson said the deal was "another important step" in the company's strategy to grow its portfolio of retail-led destinations, adding that the asset offers "a clear path to income and value creation."

The company expects the acquisition and associated equity raise to be immediately earnings accretive, with projected FY26 EPRA earnings per share increasing by more than 2 percent.

Hammerson has also upgraded its full-year guidance, forecasting EPRA earnings of around 132 million pounds, up from previous guidance of 120 million pounds, with Manchester Arndale expected to contribute approximately seven million pounds.