European real estate firm Hammerson has made a profit of £336 million during the first six months of the year due to an increase in demand for office space. This comes after the firm suffered a loss of £819 million in 2009.
The figures equate to a £259 million increase in the value of Hammerson’s property portfolio, according to The Independent.
John Nelson, chairman of the firm, said: “Although our markets have continued to recover from recession over the first half of 2010, the outlook remains uncertain. Against this background we are maintaining a clear focus on improving our portfolio, maximising the income from each of our assets and sound financial management”.
He continued: “We have made good progress this year in each of these areas. The underlying quality of our portfolio has been demonstrated in our results, with lower vacancy and growing income in a challenging environment”.
“Over the period we have executed a number of transactions which will improve the future growth prospects of our business whilst releasing capital for potential reinvestment. We have advanced our valuable development pipeline in the UK and France which will provide a basis for additional future growth”, added Nelson.
Hammerson bought Leadenhall Court for £65 million in June and sold the Exchange Tower in the London Docklands and the Espace Saint Quentin shopping centre near Paris.
The firm predicted a rental recovery in the central London area saying that the limited supply of office space will cause “higher prime headline rents”.