An Established, Evolving Relationship

MUFG has enjoyed a long relationship with Hammerson, one of the UK's largest REITs. For over 75 years, Hammerson has invested in and managed some of the largest shopping centres, retail parks and premium outlets in Europe. Its portfolio is now worth over £10bn. Since being appointed banking partner to Hammerson in 2004, MUFG has provided a broad range of products and services to the REIT.

MUFG is a top tier lender to Hammerson and provides ongoing support for deposits, FX, interest rate risk management, and Debt Capital Markets. MUFG was appointed as an Active Bookrunner on a €500m bond issue in 2016. As the nature of Hammerson's business has changed, MUFG has adapted to meet these needs. Historic success has built trust and confidence as we continue to develop our relationship further.

Global Partnerships: Broadening the Investor Base

The most recent iteration of this relationship was a mandate as Sole Coordinator and BMLA on the refinancing of an existing GBP175m RCF signed in 2012. Hammerson's ambition was to build capacity to achieve its long-term strategic objectives, reduce debt financing costs and bring all its facilities under the same commercial terms. An attractive funding environment made the opportunity ripe for Hammerson.

MUFG led the facility launch with 10 existing lenders and, crucially, secured five new international (particularly Asian) lenders through its global network. These were all pre-sounded and led by MUFG.

The new, international lenders had a significant impact. They were a market to which Hammerson had had very little exposure in the past. At launch, the involvement of these lenders resulted in the facility being oversubscribed. Hammerson was able to significantly upsize the original £175m facility, securing a final facility of £360m in April 2017. An unexpected, and very welcome, outcome for Hammerson.

Timon Drakesmith, Hammerson's CFO, said: At the time of signing, this facility represents “the latest milestone" in the company's journey. MUFG is delighted to continue to play a significant role in this journey.

Richard Sharp, Group Treasurer, Hammerson PLC, said:

"We wanted to say thank you for such an excellent job in co-ordinating the facility. We were very pleased with the result, enabling us to upsize the existing facility from £175m to £360m and bring all three of our facilities onto the same commercial terms. Thanks very much for all your hard work in bringing this transaction on our target terms and timetable, and the ability to upsize has been a great addition."