Hammerson’s chief executive David Atkins is stepping down after more than a decade at the helm, in what has been a roller-coaster period for the landlord.
Atkins, who has worked at Hammerson for 22 years and became chief executive in 2009, made his mark on the company after a series of strategic decisions threw his role into the spotlight.
Under his remit, Hammerson exited the office market in 2012 to focus its efforts on retail, with the majority of its assets sold to Brookfield Office Properties. It also invested in premium designer outlets, including Bicester Village.
More recently, the landlord has been trying to turn its fortunes around since its failed £3.4bn takeover of intu Properties in 2018. This came after it rejected a bid from French rival Klépierre, which Atkins has been heavily criticised for.
The value of its total portfolio fell by 16.2% year-on-year to £8.3bn during 2019. The landlord had pinned its hopes on selling a £400m retail park portfolio to Orion European Real Estate Fund V to boost its balance sheet, but the deal collapsed earlier this month.
When Atkins took up the job in October 2009, Hammerson’s share price stood at 391.2p, peaking at roughly 705p in 2015. It now stands at around 73p.
It appears Atkins made the decision to step down – by spring 2021 – on his own terms. However, some industry figures have pointed out that the timing of his announcement seems unusual.
It comes as retail landlords in particular face immense pressure as a result of Covid-19 disruption. Rival landlord British Land, for instance, has paused succession planning while chief executive Chris Grigg steers the business through uncertain times.
One senior executive at a landlord said: “You’d expect any rational board to be thinking along those lines. [There isn’t] any rush to do anything in the middle of all of this.”
Atkins’ announcement came as South Africa’s Lighthouse Capital upped its stake in Hammerson to nearly 11.1%, fuelling speculation regarding its motives. Last week, it offered owners of Johannesburg-listed Hammerson shares the option to swap these for new stock in Lighthouse.
“It’s a long and possibly eventful time until Atkins actually leaves,” noted one analyst.
As for who should replace Atkins in the role, Hammerson’s managing director for the UK and Ireland Mark Bourgeois appears to be an obvious contender at this early stage.
That is unless cash-rich funds or private equity giants such as Blackstone spot an opportunity for a take-private before spring next year.
Outside of Hammerson, there is also speculation that Capital & Regional’s chief executive Lawrence Hutchings, who was managing director for retail at Hammerson for five years until 2012, may also be high up on headhunters’ lists of people to call.
Either way, it is evident that Atkins’ replacement will have their work cut out to reposition the business for an uncertain future.
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