Hammerson takes full control of The Oracle, lifts guidance

(Sharecast News) - Property development and investment firm Hammerson said on Friday that it has acquired the remaining 50% stake in The Oracle, as it reported strong year-to-date trading and lifted its EPRA earnings guidance for FY25. Hammerson completed the £104.5m purchase of the remaining 50% stake in The Oracle, located in Reading, from joint venture partner ADIA, with the deal reflecting a stabilised yield of 8.9% and expected to be around 5% accretive to FY26 EPRA earnings.

The Oracle, one of the UK's leading retail and leisure destinations, has seen significant investment in recent years, including new offers from TK Maxx and Hollywood Bowl.

Hammerson lifted total gross rental income growth guidance for The Oracle to 19% and raised its EPRA earnings forecast for the asset to at least £102m, up from 17% and £101m, respectively.

For the group as a whole, third-quarter footfall rose 5% year-on-year, with like-for-like sales up 2%, while UK performance was said to have been "particularly strong".

Hammerson said demand for space remained robust, with 261 leases signed at rents well ahead of passing levels, leaving contracted rent at £190m and occupancy at 95%.

Chief executive Rita-Rose Gagné said: "We have seized the opportunity to gain full control of The Oracle, an asset in transition, to capture the growth opportunities ahead. This represents our fourth JV buyout in a little over a year, as we continue to act decisively and execute our growth strategy at pace.

"Combined with our continued strong performance and acquisition of The Oracle, we expect further growth in 2026 and 2027 as the full benefits of our repositionings and acquisitions come through, underpinning the group's medium-term guidance of an 8-10% EPRA EPS CAGR."

Reporting by Iain Gilbert at Sharecast.com