Hammerson, the FTSE 100 retail property developer, has purchased an additional 16.7 per cent stake in Bullring, meaning its now own exactly half of the Birmingham shopping centre.
In a joint venture with Canada Pension Plan Investment Board (CPPIB), the two parties acquired Future Fund's 33.3% stake for £307m, of which Hammerson's consideration is £153.5m.
The amount will be funded from the company's existing cash resources.
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Passing rents for the whole scheme are £53m per annum and after taking into account purchase costs the net initial yield on the purchase is 5.7%.
David Atkins, Hammerson Chief Executive said: "This is an excellent opportunity to enhance our position in one of the UK's strongest shopping destinations at an attractive entry price.
"Bullring is an iconic centre which has performed extremely well since opening in 2003, and I am confident in the continued future success of Bullring as consumer demand for venues which offer exceptional experiences continues to rise."
The joint venture is the third partnership between Hammerson and CPPIB.
Overnership of the Bullring is now 50% Hammerson, CPPIB 16.7% and Henderson Shopping Centre Fund (33.3%).
Hammerson's share price rose 0.57% to 527.50p by 13:25.
NR
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