Shares digital

With many property companies now trading at a significant discount to their net asset value, it was only a matter of time before cash rich companies swooped in to take advantage of cheap deals.

European real estate firm Hammerson (HMSO) looks set to become the next takeover victim, following reports that Abu Dhabi’s largest property company, Aldar, is mulling plans to snap up the group. Aldar is said to be eyeing the big three FTSE 100 real estate firms, Hammerson, Land Securities (LAND) and British Land (BLND), but Hammerson has been touted as the most likely fit due to its property portfolio in the UK and France.

The company invests in and develops shopping centres, retail parks and prime offices, and has a total property portfolio worth £7.3 billion, adding to its attraction.The shares in Hammerson ticked up to £11.22, while those of British Land slipped to 897.3p and those of Land Securities were down 2% at £15.21.

Shares says: Could be the start of a flurry of M&A activity. Await further news.

by: Rachel Robson