Hammerson takes stake in Bullring shopping centre to 50 per cent

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.

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.

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

Recommended

The MoneyWeek Podcast: picking stocks is fun, but you need to do your homework
Investment strategy

The MoneyWeek Podcast: picking stocks is fun, but you need to do your homework

John Stepek talks to Steve Clapham, investor, analyst and author of The Smart Money Method, about the dangers in picking individual stocks and why you…
8 Apr 2021
BP looks set to return more money to shareholders as it beats expectations
Energy stocks

BP looks set to return more money to shareholders as it beats expectations

Oil major BP is to embark on a share buyback programme after significantly reducing its debts. Saloni Sardana looks at what it means for your portfoli…
6 Apr 2021
Deliveroo has hit the market – but it’s not getting the warmest welcome
UK stockmarkets

Deliveroo has hit the market – but it’s not getting the warmest welcome

Food delivery company Deliveroo made its debut on the stockmarket this morning. But with the share price sliding by 30% straight away, it’s not made t…
31 Mar 2021
Three stocks to buy now that will come back stronger after Covid-19
Share tips

Three stocks to buy now that will come back stronger after Covid-19

Professional investor Ed Wielechowski of Odyssean Capital, chooses three compelling stocks that should thrive in a post-pandemic world.
29 Mar 2021

Most Popular

Central banks are rushing to build digital currencies. What are they, and what do they mean for you?
Bitcoin

Central banks are rushing to build digital currencies. What are they, and what do they mean for you?

As bitcoin continues to soar in value, many of the world’s central banks are looking to emulate it by issuing their own digital currencies. But centra…
8 Apr 2021
Nuclear power might never be popular – but now looks a good time to invest
Commodities

Nuclear power might never be popular – but now looks a good time to invest

Nuclear power gets a very bad press, but it is the ultimate renewable energy source. Interest in it is perking up again, says John Stepek. Which means…
9 Apr 2021
House prices: from boom to even bigger boom
House prices

House prices: from boom to even bigger boom

UK house prices have risen to new to record highs, says Nicole Garcia Merida. Demand continues to outpace supply, but continued low interest rates, th…
9 Apr 2021