Hammerson calls halt to new projects in Britain and heads to France

Property giant Hammerson — owner of the Brent Cross and Birmingham Bullring shopping centres — today said it would not start any British projects until there was clearer evidence of an upturn in the economy.

It said it sees stronger improvements in France, investing £430 million in projects in Paris and Marseille. It will not start any UK construction jobs until at least 2011.

David Atkins, Hammerson's chief executive, said: "If you look at the economies, France has come through this recession in better shape than the UK. When one converts that through to the property market, we're seeing a similar picture.

"We've got better tenant demand and ultimately the French schemes are more viable."

He also said Hammerson would not start a London project unless it had been pre-let.

Hammerson said its portfolio value fell nine per cent to £5.1 billion last year — mostly because of massive tumbles in the first half of the year. In the second half, values rebounded six per cent.

Atkins said Hammerson was in "excellent" financial shape after raising £580 million in a rights issue a year ago.

It joined Land Securities and British Land in a rush for new cash from shareholders after a 45 per cent fall in values between June 2007 and last September.