Daily Telegraph City Diary: "It’s the muppet show – from an Anglo Irish Bank viewpoint"

Link to Daily Telegraph

"Lloyd Blankfein and Goldman friends, book now. A Dublin playhouse has raised the curtain on a musical with the tagline: 'It only takes a few muppets to screw an entire country.'

"These particular muppets are the puppet-masters of the defunct Anglo Irish Bank, the star of 'Anglo: The Musical', which is playing to packed-out audiences of Irish taxpayers able to see the funny side, as they await a sixth austerity budget in five years.

"Characters in the show include Taoiseach Enda Kenny, depicted as a lapdog on the leash of German chancellor Angela Merkel, and a poor young couple who borrow €890m to build a 40-storey apartment beside their modest home. According to scriptwriter Paul Howard, the satire needed 'certain rewrites' after producers received warning letters."

The connection?

Brent Cross's Hammerson has bought part of the leasehold interests of Croydon's Whitgift Shopping Centre, in its battle for control against Westfield. (Tweedle-dum and Tweedle-dee.)

The remaining, still-'independent' Whitgift leaseholder is the 'Irish Bank Resolution Corporation Assurance Company', a subsiduary of the 'Irish Bank Resolution Corporation', the zombie-bank interests of the Anglo Irish Bank and Irish Nationwide Building Society. (The latter has no connection with the UK building society.) 

 
(Presumably from a press preview, so imperfect sound recording)

Evening Standard: "Why living standards will slip further"

Link to Evening Standard

"It is a profoundly depressing thought. Could it be possible that the twenty-somethings now entering the workforce in Britain will become the first generation for a couple of centuries that end up, on average, poorer than their parents?

"... Unless we can continue to innovate, to keep increasing our productivity, our own living standards will stagnate.

"... [Some factors are] cyclical. The really big issue, the one that matters more than anything else, is whether there has been some structural change, some damage to the great engine that has increased wealth incrementally, year after year, since the Industrial Revolution."

---

Link to Evening Standard

"We need to get set for a new normal"

"The economy has just passed a couple of milestones. Employment is, at last, higher than its previous peak; and retail sales are also at a new high. This week we should get another encouraging signal as third-quarter GDP figures are expected to show resumed growth.

"So how close are we towards being back to normal? My quite unscientific answer is that we are somewhere between a third and half-way back — but, and here’s the twist, the new normal will be utterly different from the old normal.

"... House prices are still a bit above the long-term ratio of four times average earnings, so you could say they are still too high. But in another three or four years’ time, with more or less stable prices and slowly rising money earnings, they could be back to a reasonable relationship. We will, more or less, have recovered from the housing bubble. How the monetary authorities allowed the bubble to occur is another matter." 

---

"One in 10 British firms 'are zombies burdened by debt'" (Link)

"One in ten British firms are now “zombie” companies, walking-dead businesses with unsustainable debts, due to the record low interest rate and banks’ reluctance to write off bad loans."

Battersea Power Station: Another attempt at development

The Guardian: Dave Hill's London Blog:

"... If the whole lot comes to fruition, the boast is that 25,000 new, permanent jobs will be created along with 16,000 new homes, of which an anticipated 3 to 4,000 will meet the newly-slackened definition of 'affordable' - a larger percentage than the Earls Court project and some other schemes in the capital would like to get away with, but still not very large.

"You might be able to find work in the new Nine Elms, but don't expect to be able to live there. That's the way London is going."

UK Regeneration ("in a new political and economic context")

Link to web site

"UK Regeneration (UKR) was created in 2011 to provide those working right across the sector and in all parts of the UK with the indispensable tools they will need to deliver regeneration in the new political and economic context. 

"UKR aims to influence emerging policy acting as the true voice for regeneration; to support practitioners in all aspects of their roles and to provide a place where they can share experience and what works and what doesn’t. UKR will also develop solutions for job creation, skills development and new business formation and growth. Finally UKR will get actively involved in delivering regeneration projects working with partners across all sectors and with local communities.

"UKR has three strands under active development. All are based firmly on the need to bring private investment and commercial discipline into a new approach to regeneration. Each will support the others giving us a unique strength.

• UKR Forum responds to a demand for connection between opinion formers, decision makers and those who deliver change. Join UKR Forum to influence the debate and contribute to government policy through networking with opinion formers, decision makers and those who deliver regeneration. Contact Jackie Sadek or email forum@ukregeneration.org.uk .
• UKR Knowledge will capture and disseminate best practice in the new climate for regeneration. Initially we are gathering information that might otherwise be lost as bodies such as the New Deal for Communities Partnerships are dissolved, implementing peer reviews and supporting individual businesses to adapt to the new world. You can contribute best practice and secure regeneration’s collective memory through UKR Knowledge. Contact Paul Evans or email knowledge@ukregeneration.org.uk .
• UKR Projects aims to bring private investment to bear on rebalancing the economy, releasing value from public assets through smart redefinition of what works in specific places. Bring ideas for local schemes to UKR Projects. Contact Jackie Sadek or email projects@ukregeneration.org.uk

Keep in touch
"Sign up to UK Regeneration at ukregeneration.org.uk to be part of the wide ranging network of regeneration participants, keep up to date with our team of informed and provocative bloggers, and submit your own blogs.  More details can be found on our main website."

---

Regeneration Dictionary

RGF

The latest product from the BIS ‘RAGPAG’ or Random Growth Policy Acronym Generator. Usefully, provided the name is impressive enough, there is no requirement for a policy thus generated to ‘do what it says on the tin’ or indeed to have any practical realworld value at all. See also Enterprise Zones.

Environmental Impact Assessment

An earnest and exhaustive combination of the obvious, the speculative and the impossible-to-know. Believed to be the origin of the phrase ‘unable to see the wood for the trees’ . Analysis in America suggests that they are approaching the point where the carbon footprints of the larger EIAs, which need to be transported in semi-trucks, will require an EIA of their own.

To ‘win’ planning consent

Exactly when planning consents ceased to be granted, and begun to be ‘won’, is difficult to establish, but it there does seem to be a telling alignment with the arrival and ascendance of ‘X Factor’ and similar TV shows . Reports that Department for Communities and Local Government are considering adopting a phone-in, celebrity-led system of planning decision making, as part of a new neighbourhood approach ‘to make planning more exciting’, have not been denied by Ministers, although stories that Simon Cowell might be enobled in the next Honours List to take charge of this are as yet unconfirmed.

‘Outline’ planning consent

A term, now used ironically, to apply to the process whereby a quick decision on the simple principle of development has been turned into a mammoth existentialist drama which is only resolved, if ever, long after the conditions which spawned the original development proposal have long since departed. Often closely associated with s106. [Brent Cross?]

S106

A largely futile attempt by planners to get developers to cough up for all the glamorous things the developers promised at the time of the application, but had no intention or capacity to deliver. Often part of an attempt by planners to pre-empt a revised planning application. [Brent Cross?]

Urban village (n)

A collection of residential blocks even more tightly packed than usual, and generally to be found in improbable locations hitherto deemed unfit for human habitation (cf Millennium Village, Olympic Village) [Brent Cross?]

Vibrant (adj)

Not vibrant, dull, empty, gunshots audible. [Brent Cross?]

---

"Residents and business people are being invited to join the debate on how to make Croydon great.

"For the first time, tickets are being made available to the Croydon Question Time – a question and answer session featuring some of Croydon’s major stakeholders.

"The session, which forms part of the Develop Croydon Conference, the town’s most influential regeneration summit, takes place at Fairfield Halls from 3pm on Tuesday, 27th November and confirmed panellists are:

• Jackie Sadek: Chief Executive of UK Regeneration
• Kit Malthouse: Deputy Mayor of London for Business and Enterprise
• Richard Serunjogi: Project Manager, Spirit of London
• Mike Webb: Chairman of Allianz Global Assistance
• John Burton: Director of Development, Westfield UK
• Robin Dobson: Director of Retail Development, Hammerson
• Paul Norman: Editor of commercial property news service CoStar
• Leading local political representatives

"Although attendees will be able to quiz the panel on the day, organisers of the event are also inviting members of the public to submit questions in advance. You can do this by texting 60777 and typing CROYDONQT before your question. Your operator’s usual text message charge applies. Alternatively submit your question via Twitter @CroydonQT or e-mail ask@croydonquestiontime.com

"Tickets for the Croydon Question Time,

which also include a networking opportunity,

are priced £75 (including VAT).

"For all the latest news on the event, visit the Develop Croydon Conference website at www.developcroydonconference.com "

BBC: "London's future skyline in doubt"

Link to BBC web site

"The tallest skyscraper planned for the City of London may never become reality, its lead architect admits - as a BBC investigation raises questions over the capital's future skyline.

"Amid the clamour that accompanied the completion of the Shard, something was amiss.

The UK's tallest skyscraper did not have a single financial tenant in place.

"... Now a BBC Inside Out study has found numerous major developments across the City that have run into problems." 

---

BBC Inside Out is on BBC One in the London region on Monday, 19 November at 19:30 GMT and nationwide on the iPlayer for seven days thereafter.

'Future Cities: The Global Community for 21st Century Decision Makers' (of no interest to Hammerson)

Link to web site

"In just a few short weeks UBM's Future Cities has become the premier online destination for innovation in global urbanization. Future Cities is the first worldwide online community hosting a diverse range of information about every component of next-generation cities - from electronics and grid, to healthcare, to security, to IT and Internet, to utilities, real estate, energy, shipping, architecture, engineering, aviation, and more.

Become a member and get access to everything from our latest blogs and videos to research reports including our coverage on disaster response and rebuild efforts taking place in cities dealing with the impact of Hurricane Sandy:

• Learning From Sandy
  Lower Manhattan sat in the dark several days after Hurricane Sandy, leaving many questions for those who will reconstruct NYC and build future cities.

• Sandy, Security & Sustainability
  First as a hurricane, then superstorm - even now as a low-pressure trough - Sandy is straining incident and emergency response resources to unprecedented levels.

• The Burden of Urbanization
  Bruce Katz of the Brookings Institute discusses the economic and moral role of the United States to help emerging cities all over the world.

• Changing the Flood Prevention Paradigm
  Urban areas face a great risk of flooding. Forward-thinking cities are planning for the worst with predictive analytics and even floating infrastructure.

Join Future Cities today to become a part of what promises to be THE leading online community bringing together visionaries from all over the world who are responsible for building, designing, and supporting tomorrow's urban environments.

Any questions? Please write to us at editors@ubmfuturecities.com.

Sincerely,
Nicole Ferraro
Editor in Chief, UBM's Future Cities" 

---

Top 20 Leaders in Urbanization

Introduction

by Claer Barrett

 
Tuesday, October 23, 2012 01:00 EDT

Urban migration is the drumbeat behind the global cities movement. And urbanization leaders are rising to prominence across the spheres of real estate, technology, and sustainability. 

By the year 2050, it is projected that 70 percent of the global population will live in cities, consuming the lion's share of the world’s natural resources. As populations rise and the pressure for limited resources increases, smart thinking is needed - in the form of smart cities, which harness technology to fight the challenges of urbanism, whilst maximising its creative and economic potential. 

In the following links, you'll find the Top 20 individuals around the globe who are at the forefront of this movement. (Feel we've missed the mark or left anyone off of our list? Be sure to tell us on the message boards.)

• 1) Richard Florida, Academic, Author, Urban Theorist
• 2) Steve Lewis, Founder & CEO, Living PlanIT
• 3) Jacques Rogge, President, International Olympic Committee
• 4) Angela Ahrendts, CEO, Burberry
• 5) Song Young-gil, Mayor of Incheon, S. Korea
• 6) Mathieu Lefevre, Executive Director, New Cities Foundation
• 7) Dr. Ya-Qin Zhang, Chairman, Microsoft Asia Pacific Research & Development Group
• 8) Huang Qifan, Mayor of Chongqing, China
• 9) Rick Robinson, Executive Architect, Smarter Cities Programme, IBM
• 10) Paul Romer, US Economist, Entrepreneur, Activist
• 11) Daniel Libeskind, Founder, Studio Daniel Libeskind
• 12) Lord Norman Foster, Founder & Chairman, Foster + Partners
• 13) Rem Koolhaas, Founder, OMA
• 14) David Adjaye, Founder, Adjaye Associates
• 15) Joel Garreau, Author & Founder, The Garreau Group
• 16) Sheikha Mozah bint Nasser Al Missned, Chairperson, Qatar Foundation for Education, Science & Community Development
• 17) Kenneth Er, CEO, Gardens by the Bay
• 18) Attila Kiss, Founder, Szimpla Budapest
• 19) Klaus Wowereit, Governing Mayor of Berlin
• 20) The 7 Billionth Person

Financial Times: "Osborne to widen Reits tax incentives"

Link to web site, and subscription details

"George Osborne is poised to introduce a major change to the listed commercial property sector by allowing real estate investment trusts (Reits) to invest in each other on a more tax-efficient basis.

"The chancellor is set to change the current tax treatment of the listed property vehicles, so that investing in other Reits will enjoy the same tax freedom as investing in physical buildings.

"... The government first introduced Reits in Britain in 2007, a move which prompted conversion by most of the major players in the industry such as British Land, Land Securities and Hammerson." 
 

Hammerson never mentions Brent Cross - have you noticed?

Link to 'The Business Desk' web site

"In Bullring [and Brent Cross] co-owner Hammerson's ... interim management statement, for the period 1 July to 8 November, the property investment firm reported that, across its UK shopping centre portfolio, tenants' sales increased by 3.2%, notwithstanding a small decline in footfall of 1.1%, compared to Q3 2011.

"Hammerson now focuses exclusively on retail, having sold £627m of office property and reinvested £551m in retail assets since February."

NOVEMBER 2009: Statesman's Backing for Brent Cross Cricklewood ... ... NOVEMBER 2012: Development through tax havens!

NOVEMBER 2009:
Statesman-like backing:
'It'll all turn out okay,
just trust Barnet Council' 

Link to Barnet Times

Barnet Times:
"Leader backs Brent Cross development at meeting"

"THE leader of Barnet Council was among several people to speak out in favour of the Brent Cross Cricklewood plans at last night's [Barnet Planning & Environment Committee] meeting.

Cllr Mike Freer [now MP, Finchley & Golders Green] admitted he had 'many reservations' when he first looked at the scheme, but said detailed applications will help allay concerns residents have. He said:

"There is no public money underpinning this regeneration scheme, all of the investment is being funded by the housing development. That's what many of the objectors fail to realise is the reality of the scheme.

I'm doing what I'm doing because I believe it's important for the long-term future of our borough."

---

"Lib Dem Brent East MP Sarah Teather
[and Navin Shah AM] with Brent Cross
protesters outside Hendon Town Hall"
Link to Barnet Times

18th November 2009:
"First night of Brent Cross Cricklewood meeting heard"
 
"THE first stage of the two-part meeting to decide the £4.5bn Brent Cross Cricklewood development plans was heard this evening.

"More than 100 people crammed into committee rooms one and two, while 50 more watched a live feed in a next door room of Barnet Council's planning committee.

"Lib Dem Brent East MP Sarah Teather was joined by Tory London Assembly member and mayor of Barnet Brian Coleman and fellow Labour assembly member Navin Shah opposing the plans.

"Representatives of a coalition of residents groups [that must be us!] as well as the Lidl and Bestways stores in the Edgware Road also spoke out."

Link to a further Barnet Times story:
"Objectors speak out against Brent Cross plans"

---

ESTATES GAZETTE:
'BRENT CROSS: THE MOVIE'

---

NOVEMBER 2012:
After Boris calls Brent Cross
'Dead in the Water',
the only activity now
is using tax havens!

Hammerson was recently involved with an off-shore tax-haven company to jointly develop part of Brent Cross.

Hammerson's employees' share scheme administration also uses a (different) off-shore tax haven. 

Now, a third off-shore tax-haven company, called Clean Power Properties Ltd., intends to build a 'pyrolysis' waste incinerator at Brent Cross Cricklewood - presumably using Hammerson's existing Brent Cross Domestic Waste Incinerator's outline planning approval.

This existing waste plant permission, granted by Barnet, is split between two sites, the first on the A5 Edgware Road, and the second next to the M1 motorway roundabout, with a 140-metre chimney. A series of pipelines would join the two sites, under or over the Midland Thameslink railway line.

(Image source)

Arguments against waste incinerators (whether 'mass-burn' like at Edmonton, or newer types, such as two-stage sites like Brent Cross, and 'first-stage' plants such as Pinkham Way) are covered on the 'United Kingdom Without Incinerators' web site.

Brent Cross's 'second-stage' incinerator site is west of the white circle
called 'Proposed town centre development', pictured above.
Link above for more details of the 'first stage' Edgware Road
incinerator site, also already approved.

Without any full planning application yet at Brent Cross, there is more detail at other Clean Power Properties Ltd. sites around the UK (all are virtually identical) such as Willesden. 

Below is this week's Brent & Kilburn Times...

(Click to enlarge)

And earlier...

Link to Ealing Times

"RESIDENTS blockaded the road on Saturday morning, as they stepped up their efforts to stop the development of a waste incinerator plant.

"The Triangle Island Residents’ Association protest aimed to highlight the disruption that Clean Power’s lorries would cause them along Old Oak Lane, Acton, near Willesden Junction. Their temporary blockade ended around midday."

---

Link to Home (see all posts).

[Reposted] "OH MY GOD- you killed the High Street!"

The Guardian:
"Town Centres: who killed the High Street?"

"In 2015 it was a parlour game; but by 2020, it was a serious worry, the subject of Commons debates. Who killed the British high street? What analysts had long warned of had finally come to pass. Outside big cities, British shopping streets had more gaps than Gaps. 

"Once-handsome town centres were now a collage of pound shops and boarded-up fronts. Their only visitors were the elderly and the teenage: those without broadband on tap, or cars to get out to the A-road retail parks.
...
"... Ultimately, the British high street died of neglect, with no agency willing to map out a different future for it. The result was town centres standing desolate, even as former customers gave their cash to internet retailers rather more sophisticated in their tax planning than their sales advice."

[Reposted] The "GREAT BRENT CROSS FLOOD" of 2012

Dear Webmaster,

Has any other viewer ["blogee"?] noticed the remarkable similarity between yesterday's flooded A406 North Circular Road at Brent Cross, looking east towards the A41, and the Grand Canal in Venice, from Ponte dell'Accademia, past Palazzo Cavalli-Franchetti, to Santa Maria della Salute?

Maybe they are related.

It seems unusual not to blame Hammerson for a cock-up at Brent Cross, but that outfit seems to be entirely blameless on this occasion.

Yours,
Thamesus Wasser, Esq., Finchley

Archaic and corrupt city state,
with feudal leadership constantly seeking
imperial power and commercial advantage

Venice

---

Paddle to Dry Land (see all posts).

(For no particular reason) St Paul's and London Bridge station, merged, this morning

Photo: Shardview77 on SkyscraperCity

Remembrance Sunday

"Finchley Catholic Grammar School lost 29 Old Boys and one former teacher during the Second World War and its aftermath. This film commemorates their sacrifice, and [was] be watched by students and Old Boys alike at the school for the Remembrance Day Mass on 11th November, 2011."

The Guardian: "Welcome to The Great Stagnation"

"Spending by consumers is being consistently depressed by low or zero wage growth, while prices have continued to rise"

Link to The Guardian

"Barclaycard doesn't just see the data from millions of credit card purchases. It also sees around one third of all payments made every day in the British economy through its merchant services, so it probably has a better feel for the state of the British economy than the Office for National Statistics.

"Unfortunately, it's not good reading. Spending by consumers is being consistently depressed by low or zero wage growth, while prices have continued to rise. Normally, spending shows a rise in November, ahead of Christmas. But it didn't happen last year, it seems. This year, whatever optimistic economists might say about 'the green shoots of recovery', it's not showing up in Barclaycard's figures, which reveals that spending is flat, at best.

"The good news is that we're not taking on more debt, even though our wages are down and prices are up. A less benign interpretation is that economic confidence is so low that few of us think we can spend now and hope to pay it off later."

Barnet Leader talked of planning service being allowed an [in-house] ‘management buy-out’

Courtesy of Barnet Bugle Research Department:

"March 2010: Lynne Hillan talked of Barnet Council's planning service being allowed to propose ‘management buy-out’ (about 2 minutes in)."


Lynne Hillan interviewed by Vanessa Feltz by BarnetCouncilWatch

Hammerson plc: Interim Management Statement, period from 1 July 2012 to 8 November 2012

Hammerson press release, 9 November 2012, starting with er, bullet points:

• Hammerson now exclusively retail focused, having sold £627 million of office property and reinvested £551 million in attractive retail assets since February
• Announced today the disposal of our final office property, Stockley House, London SW1, for £42 million, 10% above book value
• Robust operational results with occupancy of 97.3% at 30 September 2012 and leasing in the period 5% above ERV ['estimated (current) rental value'] reflecting continued strong demand for prime retail property
• Tenants’ sales increased by 3.2% in the UK, 0.3% in France
• Strong development progress: Les Terrasses du Port, Marseille, now 80% pre let. Leases signed with John Lewis for Eastgate Quarters, Leeds, and Debenhams for Elliott’s Field, Rugby
• Substantial financial resources with approximately £850 million of liquidity available for further investment.

David Atkins, Hammerson Chief Executive, said:

“I’m delighted to have completed the transition to a retail focused company just nine months after announcing our revised strategy. We sold over £600 million of office properties above book value, and have redeployed £551 million of proceeds into prime retail locations in our chosen specialist sectors. In addition, we are making excellent progress with our developments [apart from Brent Cross's 'living bridge', etc., and revised BXC planning assessments, in the dysfunctional London Borough of Barnet? And any more BX development using tax havens?] and our strong operational performance demonstrates that high quality properties in winning retail locations are continuing to deliver positive results.”

Operations

Overall occupancy in the portfolio remains high at 97.3% (30 June 2012: 97.5%). This is ahead of both our target of 97%, and the equivalent figure of 97.1% at 30 September 2011.

We signed 134 new leases in the period representing 41,000m2, and worth £7.6 million of rental income per annum. In the UK we signed long-term leases 2% above December 2011 ERV. In France, long-term leases were signed at levels 7% above ERV, to give a group figure of 5%. Key lettings in the period include:

• Ugg at Bullring, Birmingham
• Armani Exchange and Jamie’s Italian at Monument Mall, Newcastle
• Wilkinson at Manor Walks, Cramlington
• Kiko and Levi’s at Bercy 2, Paris
• Esprit and Promovacances at O’Parinor, Paris
• Adidas and Armand Thierry at Italie 2, Paris

UK tenants’ sales increased by 3.2% in our UK shopping centre portfolio, notwithstanding a small decline in footfall of 1.1% compared to Q3 2011. Over the quarter sales were particularly strong in August and September with Bullring, Highcross and Union Square performing well. In France, tenants’ sales increased by 0.3% across the portfolio in line with a slight increase in footfall.

There were 73 units in administration at 30 September 2012, broadly unchanged since the half year, of which 50 were still trading. Units in administration represent 1.7% of group rents, however recent tenant administrations may impact occupancy over the remainder of the year.

Portfolio - Investment

In the period we completed the first tranche of the disposal of office properties to Brookfield and sold our interest in 10 Gresham Street, London EC2.

We announce today the sale of Stockley House, London SW1, which completes our office disposal programme and finalises the reorientation of the Company to a specialist retail REIT. The property, which was valued at £38 million at 30 June 2012, was sold to a private investor for £42 million.

Overall the office properties were sold for £627 million at a 7% premium to December 2011 book values.

We have invested £551 million into successful retail venues offering growth potential across our defined areas of: prime regional shopping centres offering experience; UK retail parks offering convenience; and designer outlet villages offering luxury and value.

In July we announced the acquisition of further interests in Value Retail holding companies for a total of £72 million and increased our shareholder loan to the company from €28 million to €58 million. In September, we acquired Victoria Quarter in Leeds for £136 million.

In September we also exchanged contracts to acquire a 25% share of the leasehold interest in Whitgift, Croydon for £65 million. We have undertaken a detailed public consultation programme and recently presented the emerging scheme to Croydon’s Strategic Planning Committee. We expect to submit our outline planning application next month.

In October we purchased The Junction Fund for £255 million. The fund consists of four retail parks located in strong catchments, as well as 34,000m2 of consented development opportunities and 17 ha (46 acres) of additional development land. Since completing the transaction we have achieved practical completion of the conversion of the former UCI unit at Thurrock, which will accommodate the first out-of-town Nike store in the UK.

Portfolio - Development

Our major retail and leisure development at Les Terrasses du Port, Marseille, is now 80% pre-let. During the period, pre-letting agreements were exchanged with Intimissimi, G-Star, Kusmi Tea and Calezdonia. Construction is on schedule and on budget, with the project expected to open in spring 2014.

The pre-letting of our proposed Le Jeu de Paume retail development at Beauvais is progressing well. We have secured H&M as the main fashion anchor at the scheme, where 34% of the income is now exchanged or in solicitors’ hands. It is anticipated that construction will commence next year.

At Queensgate shopping centre in Peterborough, we reached practical completion of the 5,000m2 Primark store. Primark is fitting out the unit which remains on schedule to open in time for Christmas trading. In addition, Topshop / Topman and Office have opened for trade in the period, further enhancing the retail mix and vitality of this asset.

We are making good progress with extensions and redevelopments across the portfolio. We have exchanged contracts with Debenhams for a 5,575m2 store that will anchor the redevelopment of Elliott’s Field, Rugby, where we intend to submit a planning application early next year. In Cramlington, the 13,500m2 extension of Manor Walks shopping centre is progressing well on site and we anticipate the scheme opening on schedule in spring 2013. At the neighbouring Westmorland Retail Park, where we have secured planning approval for the 3,700m2 extension and secured a pre-let to Marks & Spencer, construction is due to start early next year.

Financing

In September we issued a seven year €500 million 2.75% unsecured bond due in 2019. Borrowings were £2.1 billion at 30 September 2012 and cash balances were £395 million, to give net debt of £1.7 billion (30 June 2012: £1.9 billion).

At 31 October 2012, proforma for the completion of the Junction Fund and Victoria Quarter acquisitions and the sales of Stockley House and Gresham Street, net debt was £2.0 billion reflecting loan-to-value and gearing ratios of 35% of 51% respectively. Proforma cash and unutilised facilities were £850 million.

The Group’s nearest short-term debt maturity is £100 million nominal of floating rate reset bonds that were issued in July 2008. These bonds have put options at par from February 2013 in favour of the lender and a call option at fair value in favour of Hammerson. It is estimated that the fair value of these instruments was £141 million at 30 September 2012. We are currently evaluating options for this bond, including whether to exercise the Hammerson call option to reduce the Group’s future interest costs.

Outlook

We remain cautious about the overall economic outlook in the UK and Europe. However, we have a portfolio of modern, well-located retail properties which offer consumers leisure, catering and multi-channel capabilities. These assets continue to attract both domestic and international retailers, which gives us confidence in our ability to grow underlying rental income.

---

Financial information

The financial information contained in this statement is based on unaudited management accounts for the three months ended 30 September 2012. The exchange rate used in preparing this statement is £1 = €1.255.

Forward-looking statements

This document contains certain statements that are neither reported financial results nor other historical information. These statements are forward-looking in nature and are subject to risks and uncertainties. Actual future results may differ materially from those expressed in or implied by these statements. 

Many of these risks and uncertainties relate to factors that are beyond Hammerson’s ability to control or estimate precisely, such as future market conditions, currency fluctuations, the behaviour of other market participants, the actions of governmental regulators and other risk factors such as the Company’s ability to continue to obtain financing to meet its liquidity needs, changes in the political, social and regulatory framework in which the Company operates or in economic or technological trends or conditions, including inflation and consumer confidence, on a global, regional or national basis.

Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this document. Hammerson does not undertake any obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date of this document. Information contained in this document relating to the Company should not be relied upon as a guide to future performance.

"The Private Detective announces their crime prevention services in the light of a recent Sky News report Brent Cross Jewellery Shop Targeted in Raid" (Ah, a job for MetPro)

The private investigator service has announced their services to help in crime prevention, following a Sky News report dated 6th November 2012 that a Brent Cross jewellery shop was targeted in a raid.

"Sky News reported on 6th November 2012 that a jewellery shop in Brent Cross shopping centre was targeted shortly after 10.15am on a Tuesday morning by four people on three motorbikes. There were no reported injuries but an elderly man was treated for shock.

"The raiders were reported to have entered the shopping centre on motorbikes armed with axes and bats. They got away on the motorbikes with a quantity of quality designer watches and jewellery. The motorbikes were later found abandoned at a nearby golf course.

"The investigators at the Private Investigator in London are often asked to help companies and the general public with crime prevention measures that can help protect assets.

"Individuals and businesses can keep their property safe and secure by following simple advice such as ensuring all windows and doors have security locks fitted and burglar alarms and CCTV systems installed.

"A spokesperson from The Private Investigator said:

"Surprise crimes like the jewellery shop raid in Brent Cross Shopping Centre do not happen every day, and the suspects may be found as a result of information caught on their CCTV cameras. CCTV systems, burglar Alarms [sic] and motion sensitive lights can all deter a criminal from targeting your property."

"The Private Detective has a pool of skilled and highly trained private detectives and private investigators in the UK and abroad. This nationwide company includes their long associated business partners UK Private Detective who can supply investigation services in and around the London area."