Birmingham's Grand Central shopping centre to be sold

The owner of Birmingham’s Bullring is close to a 340 million pound deal to buy the shopping centre above the city’s rejuvenated New Street station.

Hammerson, the FTSE 100 property giant that also owns retail hubs such as Silverburn in Glasgow and The Oracle in Reading, is on course to seal the purchase of Grand Central by Christmas.

In September, thousands flocked to the opening of the centre, which is anchored by John Lewis. Grand Central was built as part of a 750 million pound renovation of the station, formerly a 1960s eyesore, by Network Rail and the city’s council.

Grand Central opening sees end of financial crisis

The replacement and Grand Central were seen as symbols of the West Midlands’ recovery since the financial crisis. When they opened, John Lewis managing director Andy Street, who grew up in Birmingham, said there would one day “be a Harvard business case study about the revival and change in the economy here."

Hammerson fought off competition from British Land, owner of Drake Circus in Plymouth, and Grosvenor, developer of Liverpool One, to secure Grand Central. Its swoop will be seen as an attempt to consolidate its grip on the city’s retail pitch.

The Bullring, which was redeveloped in 2003, has 160 stores including Apple and Selfridges. Grand Central, which took five years to build, gives it a further 66 shops. Hammerson’s move comes as the biggest property companies scramble to control a shrinking list of prime shopping centres.

The rise of internet shopping means the most sought-after retailers are interested only in taking space at dominant malls. Last year, Land Securities won a fierce bidding battle for a stake in Bluewater, Essex, in a deal that also gave it the right to manage the site. Intu, previously known as Capital Shopping Centres, bought the Trafford Centre from northwest billionaire John Whittaker for 1.6 billion pounds five years ago. Two years ago it also snapped up Midsummer Place in Milton Keynes.