Hammerson’s mixed-use Victoria Quarter in Leeds, UK. Picture: 123RF/GABRIEL MURAD
Hammerson’s mixed-use Victoria Quarter in Leeds, UK. Picture: 123RF/GABRIEL MURAD

UK and European shopping centre owner Hammerson has secured a new agreement with lenders that gives it another 18 months of breathing room.

The group’s unencumbered asset ratio is the most sensitive to valuation changes, and the covenant stated that the group’s unencumbered assets, or assets that have not been pledged as collateral for loans, should not be less than 150% of net unsecured debt.

Unsecured debt refers to debt that does not have specific assets that would be forfeited in the event of a default.

At the the end of December, this ratio stood at 189%, but has been relaxed to 125% for reporting periods until the end of June 2021, and to 140% for a new test date of the end of October 2021, the group said.

In morning trade on Wednesday, Hammerson’s share had risen 5.11% to R18.10, having fallen by more than two thirds so far in 2020.

gernetzkyk@businesslive.co.za

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