Aberdeen's Union Square owner Hammerson sees slump in rents amid virus crisis

Hammerson, the retail ­property giant that owns Aberdeen’s Union Square ­centre, has warned that almost two-thirds of the rent that it was hoping to see in its bank account last week has not materialised as stores around the country close their doors.

Hammerson has a portfolio of major shopping and leisure facilities including Union Square in Aberdeen.

The shopping centre owner revealed that, by Friday, two days after deadline, it had only been paid 37 per cent of the rent that was billed in the UK for the second quarter of the financial year.

After stripping out rent that has been waived, deferred, or switched to monthly payments, the figure climbs to 57 per cent of what was due. Hammerson expects to collect more money as it puts more temporary agreements in place.

It comes after the order to shut all non-essential shops, bars and restaurants across the UK in an effort to slow the spread of coronavirus.

Last week, rival Intu, owner of the Braehead complex on the outskirts of Glasgow, revealed that it had only received 29 per cent of the rent payments that were due on Wednesday, the deadline for the second quarter.

In its update, Hammerson said: “In these circumstances, we believe we should support our occupiers, particularly smaller and independent brands that are less resilient to the closure of their space in our centres.

“We have received a variety of requests for rent deferrals, monthly payments and waivers, which we are reviewing on a case-by-case basis, taking into account the business model and risk profile of the occupier, alongside the aid made available by the relevant governments.”

In Ireland, the group’s flagship sites have been closed since 25 March, apart from essential stores which make up around 8 per cent of its passing rent in the country. In France, the FTSE 250 firm has offered temporary monthly rent deals to tenants.

The board scrapped the shareholder dividend and withdrew its guidance for the financial year, saying it was too early to tell what the impact of Covid-19 might be.

Last month, Hammerson announced its largest disposal in a decade as it sold its nine remaining retail parks for £455 million. Those sites included Falkirk’s Central Retail Park.

The group saw its losses ­widen after selling off sites to bolster its balance sheet. Hammerson, which is also joint owner of the Silverburn shopping centre in Glasgow, racked up a £573.8m pre-tax loss in the year to 31 December, widening from a £173.3m ­deficit in 2018, on lower rental income.