Bullring owner Hammerson gets just 16 per cent of third quarter rents in UK
Shopping centre operator Hammerson has collected just 16 per cent of rents due in the UK during the third quarter at June-end, as retailers reel under pressure with the coronavirus lockdown denting sales.
But the owner of the Bullring and Grand Central in Birmingham said it is "confident that collection rates will continue to improve materially in all regions as agreements are progressed with brands".
It also announced it had been able to secure some breathing space from lenders and accessed the Government's coronavirus support scheme to bolster its balance sheet.
In a boost its finances, the company had received approval for issuance of up to £300 million under the Covid lending facility, increasing maximum cash flow to £1.5 billion.
To further enhance cash reserves, an additional £300 million had been drawn on its revolving credit facilities, the company said.
The firm said 73 per cent of UK rent had been collected for the first half of the year.
The update come less than a week after Merry Hill owner Intu tumbled into administration after failed talks with its lenders.
Intu had struggled under a £4.5 billion debt burden for the past year, and has been hammered by significantly lower rent payments from retail tenants since the coronavirus outbreak.