Hammerson is taking full control of the UK’s Bullring and Grand Central shopping centres by acquiring Canada Pension Plan Investment Board’s (CPP Investments) 50% interest in the assets for £319m (€368m).
FTSE 250-listed Hammerson said it intends to raise capital through an institutional share placing to help fund the acquisition of its joint venture partner’s 50% stake in Bullring and Grand Central in Birmingham, with the remainder financed from existing cash resources.
The Bullring features 1.3m sqft of prime retail space. Grand Central is currently undergoing preparations for repositioning, a process initiated after tenancy changes that occurred during COVID-19.
CPP Investments said it expects net proceeds of approximately C$615m (€388m) from the transaction. The Canadian investor’s involvement with the Bullring began in 2013 with a 16.7% stake, which grew to 50% in 2022, while its investment in Grand Central dates back to 2016.
Rita-Rose Gagné, CEO of Hammerson, said: “This is an exciting milestone for Hammerson. Our investment alongside key trusted brand partners has seen Bullring deliver a standout operational performance in recent years, cementing its reputation as a top-five UK destination.
“Birmingham is a thriving, growing city and our dynamic catchment continues to drive footfall and sales growth. Full control of this super prime asset allows us to consolidate the position of our Birmingham estate at the heart of the UK’s second city and explore new opportunities to deliver enhanced value and risk-adjusted returns.”
Tom Jackson, managing director, real estate Europe, CPP Investments, said: “The Bullring has been a standout performer in our UK portfolio since our upsize in 2022, and we have worked closely with Hammerson to reposition the asset, increase occupancy and attract new anchor tenants.
“Today’s sale agreement allows CPP Investments to crystallise the strong performance of Bullring and realise value created, delivering significant returns for the CPP’s 22m contributors and beneficiaries. With Hammerson taking ownership, both assets are well-positioned for a promising next phase under their experienced guidance.”
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