www.hammerson.com

Shopping centres not in favours with the institutions/funds due to on-line shopping.

Hammerson and INTU currently subject to a all share takeover merger with INTU at 0.475 HMSO for each INTU.

I bought this at 512 in December for the Santa rally and sold out on 31st December at 547.

I bought back over the last couple of days at 508 and 495 for three reasons

1. Footfall figures from half year at INTU is rising so whilst on-line is getting a bigger share the pot is getting bigger or at least INTU's slice of the cake is.

2. If you compare the charts of BLND and INTU I see divergence on the chart below. BLND has gone XD by 7.5p as well which would make the divergence even larger, although I recognise BLND and LAND have a different business proposition and not 100% focused on property centres

3. I believe some of the divergence may be driven by Carlson as it appears from the RNS and short-tracker they are trying to arbitrage on INTU as they buy and sell an equivalent value each day. You can see the trades going through all day, which is what I think keeps driving the share price down. Carlson don't care what price they sell at as long as they can arbitrage and the market can't absorb what they are selling.

If you run the numbers it's 0.475 INTU shares for every HMSO

So, with HMSO at 500p, INTU should be 237.5p, but it isn't it 530p, so a 1.5% gap to arbitrage. The gap has been like this for some time. It was 10p about a month ago.

Effectively I'm suggesting the share price is artificially low due to the arbitrage play on top of my other reasons.

I will probably sell again at 550 as I have a stack of INTU as well which will convert to HMSO in due course. Happy to collect the dividend if it doesn't rise. I would hope that at this price the we are in the area that the share price is protected by the discount to NAV. Another 8% fall and we are approaching the Brexit price cash bottom, which seems crazy low.



HMSO in blue, 7% divergence in a month seems overdone to me

For reference

According to the latest BRC-Springboard monthly data, UK Total Retail Footfall fell 3.5% in December, the worst result for any month since March 2013 reflecting a Monday Christmas, poor weather and the inexorable consumer migration online. Alarmingly, all three of the BRC-Springboard’s retail classifications recorded a reduction in footfall; retail parks notched up the strongest overall momentum of the three formats, down 0.6% year-on-year, with the high street 4.6% lower year-on-year and shopping centres down 3.8%.

Carlson Capital continuing to grow their arbitrage play on Friday.

Carlson still at it day after day with their arbitrage play and short now above 1.5% on HMSO.

Getting fed up of them tbh

Interesting turn of events after steep share price fall. Price a long way off reported suggested Klepierre terms. Who said retail was dead?! Dyor.

Nice. Especially considering dividend of 15p last week.

However, I don't know what to do. The offer looked a bit more like an exploratory chat than anything with huge conviction.

I don't know what to do either, but we're a long way off from having to make any decisions.

Most likely i will have no choice anyway, as my shares will probably still be stuck in the black hole which was once Beaufort Securities.