Hammerson plc · LSE:HMSO
Hammerson — Investor Presentation (May 2008)
29 slides from Hammerson's investor presentation, May 29, 2008
Slide 1: SRI Investor Tour
Hammerson bp SRI INVESTOR TOUR 29 May 2008
Slide 2: Portfolio
PORTFOLIO As at 31 December 2007 Total portfolio: £7.3 billion UK Offices 22% UK Shopping Centres 32% France Offices 5% France Retail 23% UK Retail Parks 17% Germany Retail 1% Total portfolio: £6.7 billion Average unexpired lease term 10.5 years Occupancy rate 98.2% Investment portfolio 6.6% reversi
Slide 3: Properties Developed by Hammerson
PROPERTIES DEVELOPED BY HAMMERSON The Oracle, Reading WestQuay, Southampton Total portfolio: £7.5 billion Bullring, Birmingham Bishops Square, London E1 3
Slide 4: Current Developments
CURRENT DEVELOPMENTS Parinor, Aulnay-sous-Bois 60 Threadneedle Street, London EC2 Cabot Circus, Bristol 125 Old Broad Street, London EC2 4
Slide 5: Future Developments
FUTURE DEVELOPMENTS Sevenstone, Sheffield Bishops Place, London E1 Les 3 Fontaines, Cergy - Pontoise Cricklewood, North London 5
Slide 6: The Hammerson Cycle
THE HAMMERSON CYCLE Active Portfolio Design Design & Management & Planning Planning Hammerson Corporate Construction Asset Asset Management Construction Management Letting 6
Slide 7: CR Management
CR MANAGEMENT Development CR GROUP Operations Corporate Development CR GROUP Operations Corporate 7
Slide 8: Material CR Issues
MATERIAL CR ISSUES Development Operations Corporate Climate change and energy Resource use Community regeneration Supply chain Customers 8
Slide 9: Development Activities
DEVELOPMENT ACTIVITIES Major development programme and pipeline All development on brownfield land Typical £450 million annual project spend Working with councils on major development projects in 12 cities Cabot Circus, Bristol 9
Slide 10: Development – Key Considerations
DEVELOPMENT – KEY CONSIDERATIONS Design and Planning Climate change and energy Aspirations of city councils Community consultation Design and connectivity Resource use Construction Community regeneration Contractor engagement Energy, water, waste efficiency Recycling of materials on-site Supply chai
Slide 11: Development - Initiatives
DEVELOPMENT - INITIATIVES INITIATIVE BENEFIT TO HAMMERSON RESULT (EXAMPLE) Recognition by City BREEAM Excellent Audit of all projects Councils of good environmental (Cabot Circus) under construction management leads to BREEAM Very Good access to future projects (Highcross Leicester) Waste, water & e
Slide 12: Operations: Impacts
OPERATIONS: IMPACTS 55,000 tonnes of CO2 emitted across UK portfolio 408,000 m3 of water used across UK portfolio 14,800 tonnes of waste across UK portfolio 1,300 retail occupiers 130 office occupiers Bullring, Birmingham 200 million visits to shopping centres each year 12
Slide 13: Operations – Key Considerations
OPERATIONS – KEY CONSIDERATIONS Asset management Climate change and energy Customer relationships Improve environmental performance of buildings Resource use Measurement, monitoring and reporting Community regeneration Positive contribution to local communities Supply chain Customers 13
Slide 14: Operations - Initiatives
OPERATIONS - INITIATIVES Initiative Benefit to Hammerson Result (example) Lower carbon emissions from Shopping centre energy Reduce energy use in managed portfolio in line with reductions 2007: managed portfolio future legislation 12% ( UK) 11% (France) Lower energy costs result in 27 tenants signed
Slide 15: Corporate – Key Considerations
CORPORATE – KEY CONSIDERATIONS Active portfolio management Climate change and energy Sustainability considerations included in acquisitions criteria Resource use Management Board responsibility for CR and corporate governance Community regeneration Benchmarking Staff training and development Supply
Slide 16: Corporate - Initiatives
CORPORATE - INITIATIVES Initiative Benefit to Hammerson Result (example) Goodwill supports shopping £700,000 invested in Community investment centre footfall communities in locality programmes Support from local communities of UK offices, shopping facilitates planning process centres & retail parks
Slide 17: Legislative Context
LEGISLATIVE CONTEXT Energy Buildings Performance Directive 2008 Code for Non-Domestic Buildings 2008 Code for Sustainable Homes 2007 Carbon Reduction Commitments 2010 Climate Change Bill 2008 Climate Change Levy 2000 Supplements to the London Plan 2008 Landfill Regulations 2002, 2004, 2005 17
Slide 18: CR Summary
CR SUMMARY Focus on material issues Emphasis on environmental planning Monitoring and measuring Targets established Leader in economic and social regeneration “Developer of choice” for local authorities, occupiers, suppliers 18
Slide 19: Highcross Leicester
HIGHCROSS LEICESTER
Slide 20: The Shires
THE SHIRES Existing scheme of 46,000 m², built 1991 Anchored by Debenhams and House of Fraser 60% interest acquired 2002 for £110 million from Hermes Opportunity to grow retail turnover and rents 20
Slide 21: The Opportunity
THE OPPORTUNITY Matlock Matlock Matlock Matlock Leek Leek Leek Leek LLL eic eices ester eices eices terC ter C Catc atc hhm Alfreton Alfreton atc Alfreton Alfretonm hhmment entt–R ent en –Res es –R id esident entttP iden iden PPopulation opulation opu opulation lation Newark-on-Trent Newark-on-Trent
Slide 22: City Centre Masterplan
CITY CENTRE MASTERPLAN Extended retail Science and technology park Enhanced business quarter Residential community Waterside regeneration (11 miles of waterfront) Improved city centre environment 22
Slide 23: Overview
OVERVIEW £350 million total spend (60:40 joint venture with Hermes) Anchored by John Lewis and 12-screen Cinema de Lux (new development); Debenhams and House of Fraser (existing asset) 30,000 m² additional shop units; 6,000 m² cafés and restaurants; 140 residential units Two new public squares 120 f
Slide 24: Project Objectives
PROJECT OBJECTIVES Restore commercial and civic heart to Leicester Create a vibrant evening economy Enhance quality of built environment Set new standards in environmental sustainability Increase consumer spend and dwell time in existing centre Drive rents and other income 24
Slide 25: Masterplanning and Design
MASTERPLANNING AND DESIGN Upgrading of existing centre Connectivity Mix of uses Diverse architecture 25
Slide 26: Environmental Profile
ENVIRONMENTAL PROFILE Environmental ratings include BREEAM Very Good; Ecohomes Very Good; Code for Sustainable Homes Level 3 Upgrading of old: Decommissioning of air-conditioning units in existing centre; maximised daylight Occupiers: Green lease and Tenants’ Sustainability Guide Transport: new tran
Slide 27: Social Profile: Work Highcross
SOCIAL PROFILE: WORK HIGHCROSS Charter for employment and training “Work Highcross” initiative set up to fill 2,000 retail and leisure jobs 5,000 jobseekers now registered on database Intention to fill 65% of vacancies from local unemployment pool Guaranteed interviews for 250 John Lewis jobs for “W
Slide 28: Highcross Summary
HIGHCROSS SUMMARY Major element of Leicester city centre regeneration Improvements to public realm Upgrading of existing centre enhances attractiveness to retailers and efficiency of resource use Focus on environmental considerations in design and construction Implementation of Hammerson pre-employm
Slide 29: Hammerson
—/ Harmmerson