UPDATE: Hammerson says Lighthouse demands are "value destructive"

(Alliance News) - Hammerson PLC on Tuesday backed its leadership and hit out at shareholder Lighthouse Properties PLC, who called for a strategy change.

Lighthouse, which holds nearly 23% stake in Hammerson has tabled resolutions to appoint two new board members amid discontent over Hammerson's strategy, Sky News reported.

Lighthouse wants Hammerson to accelerate asset sales and resume dividend payments ahead of its annual meeting next month.

"Lighthouse's proposals are unnecessary, distracting and value destructive. It is the board's view that neither nominee has the experience or skills that will be additive to our board and it would not be beneficial to appoint them. The board is confident that the strategy and leadership team is the right one and our performance clearly demonstrates strong strategic, operational and financial progress. 2022 was another year of delivery with like-for-like gross rental income of 8% and adjusted earnings up 60% year-on-year. 2023 is another important year in the continuing transformation of the group as we focus on execution and create a sustainable platform fit for the future," a spokesperson for Hammerson said.

The property development and investment company will hold its annual general meeting on May 4.

Lighthouse is a Mauritius-based property investor vehicle of former Hammerson director Desmond de Beer.

In a letter published in Lighthouse's annual report, it said it did "not have confidence in the Hammerson board as currently constituted, having regard to the operational and strategic weaknesses reflected in Hammerson".

De Beer, who quit Hammerson's board last October, expressed unhappiness at its record of reducing administration costs.

"Relative to the size of its managed portfolio, Hammerson's administration costs have increased and objectively are high," Lighthouse said.

"This is a matter Hammerson can rectify in the short term through disciplined management."

Hammerson shares were up 0.7% to 25.52 pence in London on Tuesday afternoon. They rose by 2.9% in Johannesburg at ZAR5.75. In Johannesburg, Lighthouse's stock inched up 0.3% to ZAR6.32.

By Artwell Dlamini, Alliance News reporter; updated by Eric Cunha, Alliance News news editor

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