Struggling Hammerson appoints new financial chief

RETAIL property developer Hammerson has named a new finance chief after coming under pressure from activist investor Elliott to sell assets more quickly.

James Lenton will join the FTSE 250 company on Sept 16 and take on the role of chief financial officer on Oct 1.

He replaces Timon Drakesmith, who departs in November having announced he would quit Hammerson earlier this year.

Elliott Advisors, which is Hammerson’s third biggest shareholder with a 5.5pc stake, has been pushing for the company to boost its flagging share price with sell-offs. The company, which owns shopping centres such as Birmingham’s Bullring, is targeting £500m of disposals this year.

The pressure comes after a tie-up with peer Intu collapsed last year. Hammerson also rejected a takeover offer from French rival Klepierre. The approach, at 635p a share, valued Hammerson at £5bn. The company’s shares closed up 1.5pc at 209p yesterday, well below the offer price.

The share price slump comes as the wider retail industry battles stuttering consumer confidence and the shift to online commerce, which has hit high streets and shopping centres hard.

Mr Lenton’s last role was at AIG, where he was finance chief of the insurer and investment group’s European business. Prior to that he worked as a partner at EY.

David Tyler, chairman of Hammerson, said the new appointee had “during his career demonstrated significant success in working with and managing complex organisations which are experiencing periods of substantial change”.

Analysts at Goodbody said Mr Lenton’s appointment could be “interpreted as a vote of confidence in the outlook for the business”.