Hammerson sells half of Grand Central Birmingham

Property firm Hammerson has formed a joint venture with the Canada Pension Plan Investment Board and sold half of the Grand Central Birmingham for 175 million pounds.

The shopping centre, which opened last September is home to John Lewis, Fat Face, Hobbs and Monsoon, and features more than 435,000 square foot of retail space.

Only last month did Hammerson acquire the shopping centre from Birmingham City Council for 335 million pounds, and now this joint venture will see one of Canada’s biggest pension funds owning half of the development.

Hammerson, which owns several UK shopping centres, including the Bullring in Birmingham and Brent Cross in London, confirmed that they will still manage the shopping centre on behalf of the joint venture.

“Through this joint venture, we are once again demonstrating our long-term commitment to the UK, and in particular, to regional markets around the country,” said Andrea Orlandi, Managing director and head of real estate investments, Europe, CPPIB. “In addition, we are pleased to expand our strong relationship with Hammerson and look forward to working with them to deliver a world-class shopping destination in Birmingham.”

In addition to selling a stake in the Grand Central Birmingham, Hammerson reported that its like-for-like rental income grew by 2.3 percent, with its UK shopping centres and retail parks up by 2.1 percent and 2.6 percent respectively.

Images: Grand Central Birmingham