SRI INVESTOR TOUR… · THE HAMMERSON CYCLE Design & Planning Asset Management Construction Asset...

SRI INVESTOR TOUR

29 May 2008

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Total portfolio: £6.7 billion

As at 31 December 2007

UK Shopping Centres 32%

UK Offices 22%

France Retail 23%

Average unexpired lease term 10.5 years

Occupancy rate 98.2%

Investment portfolio 6.6% reversionary

PORTFOLIO


UK Retail Parks 17%

France Offices 5%

Germany Retail 1%

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PROPERTIES DEVELOPED BY HAMMERSON


The Oracle, Reading WestQuay, Southampton

Bullring, Birmingham Bishops Square, London E1

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CURRENT DEVELOPMENTS

125 Old Broad Street, London EC2Cabot Circus, Bristol

Parinor, Aulnay-sous-Bois 60 Threadneedle Street, London EC2

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FUTURE DEVELOPMENTS

Sevenstone, Sheffield

Les 3 Fontaines, Cergy - PontoiseCricklewood, North London

Bishops Place, London E1

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THE HAMMERSON CYCLE

Design & Planning

Asset Management

ConstructionAsset

ManagementConstruction

Hammerson Corporate

Design & Planning

Active PortfolioManagement

Letting

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CR MANAGEMENT

Development Operations Corporate

CR GROUP

CR GROUP

OperationsDevelopment Corporate

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Resource use

Supply chain

Climate change and energy

Community regeneration

Customers

MATERIAL CR ISSUES

Development Operations Corporate

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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

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Resource use

Supply chain



Customers

DEVELOPMENT – KEY CONSIDERATIONS

Design and Planning

Aspirations of city councilsCommunity consultationDesign and connectivity

Construction

Contractor engagementEnergy, water, waste efficiencyRecycling of materials on-site

Letting

Meeting occupier requirementsImproving occupier performance (financial and CR)

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DEVELOPMENT - INITIATIVES

Recognition by CityCouncils of good environmental

management leads toaccess to future projects

Lower construction costs

Provision of skilled localworkforce provides incentive

to retailers to lease stores

Enhanced reputation withCouncils and with anchor

retailers

BREEAM Excellent(Cabot Circus)

BREEAM Very Good(Highcross Leicester)

54% on-siterecycling during

Highcross construction

£1 million governmentfunding accessedfor 6,000 jobs in

Bristol and Leicester

Objectives set to feedinto sustainability

implementation plansfor developments

INITIATIVE BENEFIT TO HAMMERSON

Audit of all projectsunder construction

Waste, water & energymonitoring and reporting

by contractors

Pre-employment trainingfor jobs created in retail

developments

Sustainabilityworkshops held withcouncils and anchor

retailers for future retaildevelopments

RESULT (EXAMPLE)

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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

� 200 million visits to shopping centreseach year

Bullring, Birmingham

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Resource use

Supply chain



Customers

OPERATIONS – KEY CONSIDERATIONS

Asset management

Customer relationships

Improve environmental performance of buildings

Measurement, monitoring and reporting

Positive contribution to local communities

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OPERATIONS - INITIATIVES

Lower energy costs result inlower service charges for

retailers

Reduce costs by combatingyearly increases in landfill tax

set by legislation

Shopping centre energyreductions 2007:

12% ( UK)11% (France)

50% of waste divertedfrom landfill in 2007

Initiative Benefit to Hammerson

Green leases

Increase recycling

Result (example)

Lower carbon emissions frommanaged portfolio in line with

future legislation

27 tenants signed upto green lease since

October 2007

Reduce energy use inmanaged portfolio

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Resource use

Supply chain



Customers

CORPORATE – KEY CONSIDERATIONS

Active portfolio management

Sustainability considerations included in acquisitions criteria

Management

Board responsibility for CR and corporate governance

Benchmarking

Staff training and development

Stakeholder communications

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CORPORATE - INITIATIVES

Goodwill supports shoppingcentre footfall

Support from local communitiesfacilitates planning process

Thorough consultation resultsin higher success rate in

planning applications

Staff retention and broaderskills base

Manage reputationalrisk

£700,000 invested incommunities in localityof UK offices, shopping

centres & retail parks

Consultations carriedout in Sheffield, Leeds,

London

Diversity training forall UK staff in 2007;

internal redeploymentprogramme in France

Responsibleprocurement policy

in development

Initiative Benefit to Hammerson

Community investmentprogrammes

Best practicecommunity consultation

Staff training anddevelopment

Supplier engagement

Result (example)

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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

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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

HIGHCROSS LEICESTER

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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

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THE OPPORTUNITY

• Add value through active asset management

• Exploit potential for expansion and refurbishment

• Higher mix of affluent ABs than most other provincial cities in UK.

• Change public perception of Leicester

• Catchment of 1.5 million people

LeicesterLeicesterLeicesterLeicesterLeicesterLeicesterLeicesterLeicesterLeicester

Market HarboroughMarket HarboroughMarket HarboroughMarket HarboroughMarket HarboroughMarket HarboroughMarket HarboroughMarket HarboroughMarket Harborough

TamworthTamworthTamworthTamworthTamworthTamworthTamworthTamworthTamworth

WarwickWarwickWarwickWarwickWarwickWarwickWarwickWarwickWarwick

CannockCannockCannockCannockCannockCannockCannockCannockCannock

AlfretonAlfretonAlfretonAlfretonAlfretonAlfretonAlfretonAlfretonAlfreton

AshbourneAshbourneAshbourneAshbourneAshbourneAshbourneAshbourneAshbourneAshbourne

Ashby-de-la-ZouchAshby-de-la-ZouchAshby-de-la-ZouchAshby-de-la-ZouchAshby-de-la-ZouchAshby-de-la-ZouchAshby-de-la-ZouchAshby-de-la-ZouchAshby-de-la-Zouch

BirminghamBirminghamBirminghamBirminghamBirminghamBirminghamBirminghamBirminghamBirmingham

BourneBourneBourneBourneBourneBourneBourneBourneBourne

BromsgroveBromsgroveBromsgroveBromsgroveBromsgroveBromsgroveBromsgroveBromsgroveBromsgrove

BrownhillsBrownhillsBrownhillsBrownhillsBrownhillsBrownhillsBrownhillsBrownhillsBrownhills

Burton upon TrentBurton upon TrentBurton upon TrentBurton upon TrentBurton upon TrentBurton upon TrentBurton upon TrentBurton upon TrentBurton upon Trent

CorbyCorbyCorbyCorbyCorbyCorbyCorbyCorbyCorby

CoventryCoventryCoventryCoventryCoventryCoventryCoventryCoventryCoventry

DaventryDaventryDaventryDaventryDaventryDaventryDaventryDaventryDaventry

DerbyDerbyDerbyDerbyDerbyDerbyDerbyDerbyDerby

DroitwichDroitwichDroitwichDroitwichDroitwichDroitwichDroitwichDroitwichDroitwich

DudleyDudleyDudleyDudleyDudleyDudleyDudleyDudleyDudley

GranthamGranthamGranthamGranthamGranthamGranthamGranthamGranthamGrantham

HinckleyHinckleyHinckleyHinckleyHinckleyHinckleyHinckleyHinckleyHinckley

HuntingdonHuntingdonHuntingdonHuntingdonHuntingdonHuntingdonHuntingdonHuntingdonHuntingdon

KetteringKetteringKetteringKetteringKetteringKetteringKetteringKetteringKettering

Leamington SpaLeamington SpaLeamington SpaLeamington SpaLeamington SpaLeamington SpaLeamington SpaLeamington SpaLeamington Spa

LeekLeekLeekLeekLeekLeekLeekLeekLeek

LichfieldLichfieldLichfieldLichfieldLichfieldLichfieldLichfieldLichfieldLichfield

LoughboroughLoughboroughLoughboroughLoughboroughLoughboroughLoughboroughLoughboroughLoughboroughLoughborough

MatlockMatlockMatlockMatlockMatlockMatlockMatlockMatlockMatlock

Melton MowbrayMelton MowbrayMelton MowbrayMelton MowbrayMelton MowbrayMelton MowbrayMelton MowbrayMelton MowbrayMelton Mowbray

Newark-on-TrentNewark-on-TrentNewark-on-TrentNewark-on-TrentNewark-on-TrentNewark-on-TrentNewark-on-TrentNewark-on-TrentNewark-on-Trent

NorthamptonNorthamptonNorthamptonNorthamptonNorthamptonNorthamptonNorthamptonNorthamptonNorthampton

NottinghamNottinghamNottinghamNottinghamNottinghamNottinghamNottinghamNottinghamNottingham

NuneatonNuneatonNuneatonNuneatonNuneatonNuneatonNuneatonNuneatonNuneaton

OakhamOakhamOakhamOakhamOakhamOakhamOakhamOakhamOakham

PeterboroughPeterboroughPeterboroughPeterboroughPeterboroughPeterboroughPeterboroughPeterboroughPeterborough

RedditchRedditchRedditchRedditchRedditchRedditchRedditchRedditchRedditch

RugbyRugbyRugbyRugbyRugbyRugbyRugbyRugbyRugby

SleafordSleafordSleafordSleafordSleafordSleafordSleafordSleafordSleaford

SpaldingSpaldingSpaldingSpaldingSpaldingSpaldingSpaldingSpaldingSpalding

St NeotsSt NeotsSt NeotsSt NeotsSt NeotsSt NeotsSt NeotsSt NeotsSt Neots

StaffordStaffordStaffordStaffordStaffordStaffordStaffordStaffordStafford

StamfordStamfordStamfordStamfordStamfordStamfordStamfordStamfordStamford

Stoke-on-Trent (Hanley)Stoke-on-Trent (Hanley)Stoke-on-Trent (Hanley)Stoke-on-Trent (Hanley)Stoke-on-Trent (Hanley)Stoke-on-Trent (Hanley)Stoke-on-Trent (Hanley)Stoke-on-Trent (Hanley)Stoke-on-Trent (Hanley)

StoneStoneStoneStoneStoneStoneStoneStoneStone

StourbridgeStourbridgeStourbridgeStourbridgeStourbridgeStourbridgeStourbridgeStourbridgeStourbridge

UppinghamUppinghamUppinghamUppinghamUppinghamUppinghamUppinghamUppinghamUppingham

UttoxeterUttoxeterUttoxeterUttoxeterUttoxeterUttoxeterUttoxeterUttoxeterUttoxeter

WalsallWalsallWalsallWalsallWalsallWalsallWalsallWalsallWalsallWolverhamptonWolverhamptonWolverhamptonWolverhamptonWolverhamptonWolverhamptonWolverhamptonWolverhamptonWolverhampton

Leicester Catchment –Resident PopulationLeicester Catchment –Resident Population

Secondary359,900

Secondary359,900

Total CatchmentPopulation1.5 Million


Tertiary765,800

Tertiary765,800

Core371,400

Core371,400


















































Secondary359,900

Secondary359,900



Tertiary765,800

Tertiary765,800

Core371,400

Core371,400


















































Secondary359,900

Secondary359,900



Tertiary765,800

Tertiary765,800

Core371,400

Core371,400


















































Secondary359,900

Secondary359,900



Tertiary765,800

Tertiary765,800

Core371,400

Core371,400

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CITY CENTRE MASTERPLAN

� Extended retail

� Science and technology park

� Enhanced business quarter

� Residential community

� Waterside regeneration (11 miles of waterfront)

� Improved city centre environment

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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 fashion retailers; 15 restaurants and cafés

� 2000 retail and leisure jobs created in city centre

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PROJECT OBJECTIVES

Restore commercial and civic heart to Leicester

Set new standards in environmental sustainability

Enhance quality of built environment

Create a vibrant evening economy

Increase consumer spend and dwell timein existing centre

Drive rents and other income

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MASTERPLANNING AND DESIGN

� Upgrading of existing centre

� Connectivity

� Mix of uses

� Diverse architecture

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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 transport hub to promote public transport use and connectivity

� Energy : Installation of energy efficient lighting and sub-metering in shopping centres; solar and gas heating in residential

� Water : Incorporation of low-flow fittings, dual-flush WCs and sensor controlled taps to improve water efficiency

� Waste : 24-37% recycled content in projects under construction

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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 “Work Highcross” participants

� Follows similar Hammerson initiatives in Reading, Southampton and Birmingham

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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-employment training programme

� Completion scheduled for September 2008

SRI INVESTOR TOUR… · THE HAMMERSON CYCLE Design & Planning Asset Management Construction Asset...

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Transcript of SRI INVESTOR TOUR… · THE HAMMERSON CYCLE Design & Planning Asset Management Construction Asset...