Developer set to spend hundreds of millions of pounds on its development pipeline after share placing

Hammerson has raised £399m to fund its development pipeline in Europe and acquisitions through a share placing.

The firm placed 71,297,452 new shares on the stock exchange yesterday at a price of £5.60 a share.

Hammerson said that the £399m raised through the placing, before expenses, would be used for funding further development and acquisitions.

David Atkins, Hammerson’s chief executive said that the success of the placing was a “clear recognition of shareholders’ confidence in both our strategy and our longer term growth ambitions”.

He added that some of the money would be used to fund the firms acquisition of the remaining 40% of  the Highcross shopping centre in Leicester - Hammerson already owns the rest of the scheme - which the firm announced it had bought for £180m yesterday.

He added it would also be used “to invest in the fast-growing European outlet sector and our extensive development pipeline which will all drive future income streams and create further value for our shareholders”.