A proposed £3.4 billion merger is set to create one of the UK’s biggest property companies.The new group will retain the name of Hammerson, will receive a pan-European retail portfolio of £ 21 billion. Hammerson received support from a deal with investors representing 50.6% of Intu's shares, including letters of intent to vote for the agreement from Peel and the directors of Intu.
Hammerson will bring centres like the Dundrum gallery into the pan-European portfolio.
The merged company will be headed by David Hartkins, Chief Executive Officer of Hammerson, while his current chief financial officer, Timon Dracksmit, will continue to play its role.
Atkins told: "This is a landmark in the history of Hammerson. A combination of high-quality portfolios of both companies. Hammerson as a larger, leading European retail REIT, increases profitability and supports opportunities for long-term growth. The acquisition creates a leading pan-European platform that is better suited to meet the needs of our retailers, attracts our customers and supports our partners and communities. I appreciate high-quality Intu centers, and I hope to work with a strengthened team to improve the efficiency of our portfolio. "
David Tyler, chairman of Hammerson, will continue to play its role, vice chairman Intu John Whittaker will become deputy chairman. John Strachan, chairman of Intu, will join the council as a senior independent director. In all, the board will have six directors appointed by Hammerson and four directors elected by Intu.
The joint group will seek growth opportunities in Europe, especially in Ireland and Spain, in two cities around the world. He will also embark on a recycling program of at least £ 2 billion.
Tyler said: "This transaction will bring real value to shareholders. The financial strength of the expanded group and its strong team make it appropriate to take advantage of higher growth opportunities on a pan-European scale. "
Strachan added: "The combination of both Intu and Hammerson will create a more stable, diverse and stronger group, which, in our opinion, will benefit all our stakeholders. Intu offers high-quality retail and leisure venues in the UK and Spain, which when combined with Hammerson's high-quality assets in the UK, France, and Ireland are a very attractive offer for retailers and buyers in leading European cities. I am proud of the financial and operational success that Intu's management team has been and is pleased to see that the Intu brand will continue. "