Hammerson to buy smaller rival Intu Properties for around 3.4 billion pounds

Hammerson

Hammerson and Intu own a number of shopping centres across the UK

The buy-out creates the biggest property company in Britain with a value of around £21 billion. It is anticipated that at least £2bn of this would be sold as part of a rationalisation.

Shares in Intu rose by almost 19% on the news while Hammerson's fell by 3%.

Mr Atkins will remain in place, along with Hammerson's chairman David Tyler and chief financial officer Tim Drakesmith.

Hammerson own Birmingham's Bullring shopping centre, as well as Brent Cross shopping centre in London.

This article was published on 6 Dec 2017 (last updated on 6 Dec 2017).

Upon completion, Hammerson is hoping to tap into new, high-value markets such as those in growing economies like Ireland and Spain, while using extra cash to expand its Premium Outlets platform.

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Shareholders will vote on the deal next year, with Intu having already secured 50 per cent of investor support for the all-paper deal.

"Intu offers high-quality retail and leisure destinations in the United Kingdom and Spain, which when merged with Hammerson's own top-quality assets present a highly attractive proposition for retailers and shoppers".

Hammerson shareholders will own 55 per cent of the combined firm, with Intu investors holding the remainder.

The combined group, which will be called Hammerson, will be led by Hammerson boss David Atkins and chaired by David Tyler. Intu's lowly valuation also helps.

"For all of the gloom surrounding the FTSE 100's real estate investment trusts, they have yet to show any signs of Brexit-related stress".

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