UPDATE 2-Hammerson names new CEO as UK property mkt thaws

* CEO John Richards to retire at end-September

* UK managing director David Atkins to replace Richards

* Posts 27.7 pct fall in adjusted net asset value p/shr

* Shares rise 0.2 pct to 345.5 pence by 0823 GMT

(Adds CEO quotes, share price, analyst comment)

By Sinead Cruise

LONDON, Aug 3 (Reuters) - Anglo-French property investor Hammerson (HMSO.L) cited stabilising UK prices for slowing a decline in net asset value and unveiled a new CEO to coincide with an imminent new dawn in Britain's withered property market. The FTSE 100-listed company has appointed UK managing director David Atkins to replace Chief Executive John Richards, 53, who is retiring after 30 years' service next month.

"We consider this is a good time to manage this change. The company is in a robust, healthy position after some of the most difficult conditions in the real estate industry for many years," Chairman John Nelson said.

Hammerson shares edged 0.2 percent up to 345.5 pence by 0823 GMT after it reported a 27.7 percent fall in half-year net asset value per share to 373 pence.

The results, which were broadly in line with forecasts from analysts at Cazenove, reflected a long-awaited degree of stability in UK commercial real estate values, which have plunged about 45 percent since June 2007.

"Having fallen in value for nearly two years, the yield on commercial property is now high relative to the cost of finance ... in the UK, property yields for certain assets are no longer increasing," Nelson said.

Hammerson is the second UK real estate bluechip to report signs of improvement in Britain's commercial property sector. On Friday, rival Liberty International LII.L the rate of tenant failures had dropped in the second quarter. [ID:nLR642658]

Meanwhile, Richards, who led Hammerson for a decade, said he had no firm plans other than "taking a rest", adding he was still young enough to return to the industry in due course.

"The last year has been pretty hard work as you might imagine with a rights issue and sales in tough economic conditions ... I'm sure I'll find something to do, and it will probably be in real estate," Richards said.

LOOKING AHEAD

Hammerson posted a 14.3 percent fall in the value of its UK properties to 2.73 billion pounds ($4.57 billion), and a comparable fall in the value of its total investment portfolio to 4.7 billion pounds.

The value of its French portfolio fell 11.4 percent to 1.77 billion pounds in the six months to end-June but Nomura analyst Mike Prew said the uncertainty expressed over this valuation could act as a drag on the business and share price performance.

The board has recommended an interim dividend of 6.95 pence a share compared with the 5 pence pledged by Liberty.

After a 584 million pounds emergency rights issue in February, Richards said the company had more than 900 million pounds of cash an undrawn facilities at end-June, with only 60 million pounds due to mature before December 2011.

Its gearing level has dropped to 81 percent, from 118 percent at Dec. 31, and net debts have fallen by 1.2 billion pounds to 2.1 billion.

Hammerson's rental income rose 7.3 percent to 156.4 million pounds and overall occupancy, excluding newly completed developments, was 95.7 percent, from 97.2 percent at Dec. 31.

Despite the fall, Hammerson said its rent collection rates remained high and the number of defaults was slowing in both France and Britain.

About 8.4 million pounds, or 3 percent of the group's total income comes from tenants in administration, around half of which continue to trade.

Richards said its two City of London office schemes at 60 Threadneedle Street and 125 Old Broad Street were 23 percent and 75 percent let respectively, with a further 44 percent of lettings at Threadneedle Street in solicitors' hands.

Hammerson's positive outlook comes as researchers in some of the world's biggest brokerages hunt for more signs of a renaissance in Europe's bombed-out real estate market.

A report published last week by Cushman & Wakefield showed second quarter European real estate investment volumes rose 2.5 percent to about 12 billion euros on first-quarter levels, helping to stabilise prices and slow the quarterly rise in yields by 75 percent to 7 basis points.

Average prime property yields in Western Europe (excluding the UK) now stand at 6.65 percent, against 6.97 percent in the UK, stoking hopes key markets like France, Spain and Germany may be near a turning point. (Editing by Andrew Macdonald) ($1=.5972 Pound) (See www.reutersrealestate.com for the global service for real estate professionals from Reuters)