Hammerson CEO Rita-Rose Gagné to Depart, Leaving Industry in Shock

Rita-Rose Gagné, the CEO of Hammerson, has made the unexpected announcement of her intention to resign from her position at the shopping center management firm.

Gagné, who has held the role since November 2020, informed the board of her plan to step down in 2026 and will remain with the company for one additional year while her successor is identified.

Hammerson’s chairman, Robert Noel, expressed gratitude to Gagné, 62, for her exemplary leadership and significant contributions throughout her tenure.

He noted, “She has successfully driven a significant turnaround, transforming Hammerson into the foremost UK-listed, pure-play owner and operator of prime retail and leisure city destinations. The company is now strategically positioned for continued growth and value generation.”

Gagné reflected on her time with the company, stating that her upcoming departure marks an “incredible five years.” She commented, “It has been a privilege to collaborate with our talented teams to enhance our culture, improve our balance sheet, and optimize our portfolio, driving the business back to growth. With the company now in excellent condition, a robust team in place, and ample opportunities on the horizon, I feel it’s the right moment to pass the leadership on.”

Following the announcement, Hammerson shares saw a decline of 3.5 pence, or 1.2 percent, settling at 278 pence on Wednesday morning.

Initially, Gagné’s appointment caused some skepticism, considering her background in law, including a tenure at Ivanhoé Cambridge, a major Canadian property investment firm, which enabled her transition into property management. Prior to her role at Hammerson, she had no experience running a public company, particularly one facing significant challenges.

Gagné, whose compensation included £3.1 million in salary, bonuses, and share options for 2024, is regarded as having effectively managed Hammerson by divesting several malls labeled as “non-core,” exiting complicated joint ventures, and implementing cost reductions.

Under her leadership, Hammerson’s portfolio has been streamlined from 21 flagship destinations, 20 outlet centers, and numerous retail parks, down to merely ten city center malls. The workforce has also drastically reduced from over 500 employees to approximately 125.

At the time of her appointment, the company was burdened with excessive debt alongside declining valuations in retail real estate, exacerbated by the rise of online shopping, which led to the closures of major tenants such as Debenhams and Topshop.

Her strategic cuts and asset sales have successfully reduced Hammerson’s net debt from £2.2 billion in 2020 to under £800 million as per the most recent figures. Additionally, the loan-to-value ratio, a crucial metric for property owners, has improved from nearly 50 percent to 30 percent.

In an interview earlier this year, Gagné remarked, “It’s taken significant effort to reach our current state, and we are just beginning. This phase is exciting; we get to start investing and witnessing the results of our initiatives.”

Her decision to retire surprised many in the industry, especially as she was nearing a stage where growth opportunities were becoming more viable after years of strategic sales and cuts.

Looking ahead, Gagné planned to transition Hammerson from a traditional retail landlord to a developer in the residential sector. She indicated that many of the retained malls have adjacent land that could accommodate an estimated 7,000 homes. Current developments include a new apartment block adjacent to the Dundrum Town Centre, one of Hammerson’s Dublin-based shopping locations, although many of these projects remain in the planning stages. The impact of Gagné’s departure on these ambitions is yet to be seen.