LONDON (ShareCast) - (Sharecast News) - Hammerson's shareholders have voted for the shopping centre owner's £825m plan to withstand the crisis hitting the retail commercial property market.

At a general meeting Hammerson's shareholders voted almost unanimously for its £552m rights issue and £274m sale of VIA Outlets to joint venture partner APG.

The owner of Brent Cross shopping centre and Birmingham's Bullring announced the rescue plan on 6 August. It said it would use the expected £794m after transaction costs to cut debt and give it financial "headroom" to shift its property holdings to rely less on retail.

UK retail property values, already under pressure from the slowing economy and the rise of online shopping, have been hammered by the Covid-19 crisis. The emergency has forced mass branch closures by retailers and made people wary of shopping in crowded places, casting doubt on the value of commercial property.

The value of Hammerson's properties fell 11.7% in the six months to the end of June to £7.7bn. The company's shares fell 4.5% to 46.27p at 15:22 BST. The shares have slumped from 310p at the start of 2020.

The UK record date to take part in the rights issue is expected to be 17:30 BST on 7 September with dealing in new shares expected on 10 September.

Hammerson also said Robert Noel had joined the board and would take over from David Tyler as chairman from 7 September. The company announced the change in June.

The company said: "The transactions will significantly strengthen Hammerson's financial position, reducing absolute indebtedness and providing liquidity headroom and financial flexibility as it continues to refocus its portfolio towards flagship destinations in the UK and Ireland and, over the medium term, invests in its mixed-use city quarters development opportunities."

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