Hammerson (LSE:HMSO) announced it aims to raise up to 10% of its existing issued share capital, roughly £190m, to help fund its acquisition of a 50% interest in Manchester Arndale, the city centre shopping district.
The retail property group completed the £218m purchase from Palma Arndale BidCo on 29 July, at a topped-up net initial yield of 7.8%.
The equity issue comprises an institutional placing via accelerated bookbuild, a retail offer through RetailBook, and a subscription of about £230,000 by company directors, including chief executive Rob Wilkinson and the finance chief, all at the same placing price.
Net proceeds will cover part of the acquisition cost and related expenses, with the balance funded from existing cash.
Hammerson expects the combined placing and acquisition to be immediately earnings accretive, adding more than 2% to FY26 pro forma EPRA earnings per share against roughly 1% dilution to net tangible assets.
The company has lifted its FY26 guidance accordingly, now expecting total net rental income growth of about 28% and EPRA earnings of roughly £132m, up from a prior £120m underlying forecast, with Manchester Arndale contributing £7m.
Pro forma for the deal and the partial disposal of Dublin Central, loan-to-value is expected to fall to about 36% and net debt to EBITDA to roughly 7 times.
Wilkinson called Manchester Arndale "a premier retail destination" serving the largest retail catchment outside London, with more than 45m annual visitors.
News Intelligence what this means for the company
Hammerson is raising £190m (10% of share capital) via placing to fund its £218m acquisition of a 50% stake in Manchester Arndale, completed 29 July at a 7.8% net initial yield. The deal is immediately earnings accretive—adding over 2% to FY26 pro forma EPRA EPS despite roughly 1% dilution to net tangible assets—and has prompted Hammerson to lift FY26 EPRA earnings guidance to £132m (from £120m), with Manchester Arndale contributing £7m of that uplift.
The acquisition materially reshapes Hammerson's earnings profile: Manchester Arndale's £7m contribution represents a 5.8% uplift to the revised £120m baseline, and the deal improves leverage (pro forma LTV to ~36%, net debt/EBITDA to ~7x) while delivering immediate accretion despite modest equity dilution. The 7.8% yield on a 50% stake in a 45m-visitor-per-year destination in the UK's largest retail catchment outside London anchors the investment case on tangible asset quality rather than speculative growth.
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