(Bloomberg) — Three-years into a grueling turnaround plan of one of Europe’s largest shopping center owners, Hammerson Plc Chief Executive Officer Rita-Rose Gagne is ready to call the bottom. 

The retail landlord has shrunk its balance sheet and reported rising values across its UK shopping center portfolio, according to a statement Thursday. The upbeat tone came after the company finally extricated itself from outlet mall landlord Value Retail, a deal announced Monday, which while involving a painful writedown allows it to slash debts, boost payouts and reinvest in its core portfolio where rents are finally climbing back off the floor. 

“After three years of intensive turnaround, we have entered a new phase with the capacity and capability to invest to accelerate growth,” the company said in the statement. 

Retail property has been through a tumultuous decade during which rents and values collapsed as retailers contended with rising online consumption, a shift that accelerated in the pandemic. With rents now more affordable for retailers who are increasingly focused on omnichannel sales, where physical stores and online sales work in tandem, landlords that survived are finally talking up the sector’s growth prospects again. 

Overall Hammerson reported a £517 million loss for the period, primarily as a result of an impairment on its Value Retail stake. The remainder of its portfolio, made up of large city center shopping malls where it plans to add homes and other uses, was broadly flat with UK valuations slightly up and its Irish holdings down by £49 million. Hammerson’s French properties were little changed. 

The valuations were supported by like-for-like rents that were up 2%, with new leases signed on average 29% higher than rent paid previously. 

“We now have the capacity and capability to accelerate growth and value creation,” Gagne said in the statement. “Our leading city centre destinations are in high demand, supported by our ongoing investment and repositioning.”  

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