Hammerson has beenon the since 1945. It is a (REIT) and owns “flagship destinations and premium outlets in key cities across the UK and Europe”. Most of the ’s properties are shopping malls like Brent Cross in London, The Bullring in Birmingham and Dundrum Town Center in Dublin. Obviously, these retail outlets were already affected by the protracted negotiations when the pandemic began.
All in all, 2020 was a terrible year. The company reported anof GBP1,7bn and rental down 41% on a basis. Its (NAV) fell by 26% to 82 pence per after the – which should be compared to its current share on the of 705c. The company had a of 46% at year end. Obviously, much of the 2020 loss was due to the downward re-valuation of the company’s various outlets. That loss should be recovered once the UK vaccination program is complete. Undoubtedly, there will be some loss of custom to online shopping which will not come back, but the of the company’s properties is now probably excessively conservative.
Add to this the fact that Resilient’s Des de Beer is theof Resilient, and a of Lighthouse and Hammerson. Lighthouse owns 15% of Hammerson and is its second largest . We know that Resilient owns a chunk of Nepi Rockcastle and shopping malls in various European cities. With Hammerson trading at a significant to its NAV and the UK rapidly getting on top of its vaccination program, it might make sense for some kind of between these three companies to be in the wind. Consider the :
This chart shows a standardchart at the top, an (OBV) chart in the middle and a histogram at the bottom with a 30-day superimposed. You can see here the steep rise in the OBV from about mid-February 2021 which shows that a large is accumulating Hammerson shares. This is a classical – large increases in volume accompanied by incremental increases in price.
The slight sell-off over the past fours is probably some , but you will notice that it does not overwhelm the previous 16 trading days of steady accumulation. To us it looks very like the are buying and the are selling.
If there is a plan afoot for some kind of merger activity involving Hammerson, then it looks as if someone with deep pockets is quietly picking up whatever shares they can before the news is made public.
Hammerson owns some excellent retail outlets and isat less than half its NAV. If retail is expected to improve in the UK, then it should be a potential target.
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