Advertisement

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.

Advertisement - Article continues below

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

Advertisement
Advertisement

Recommended

Broker safety – your questions answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
How demographics affects stock valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Do you own shares in Sirius Minerals? Here’s what you need to do now
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020
Why investors should be “cautiously bullish” for 2020
Stockmarkets

Why investors should be “cautiously bullish” for 2020

Analysts have been out in force making rosy predictions for stockmarkets in 2020, but while there is certainly a case for optimism, investors should r…
17 Jan 2020

Most Popular

What gold, bonds and tech stocks have in common
Stockmarkets

What gold, bonds and tech stocks have in common

"Risk off" or "safe haven" assets such as gold and government bonds have been doing well lately. But so have riskier tech stocks. That seems to defy c…
10 Jul 2020
An economics lesson from my barber
Inflation

An economics lesson from my barber

On reopening his shop after lockdown, Dominic Frisby’s barber doubled his prices. It’s all part of the post-Covid inflation process – and we’re going …
8 Jul 2020
Share tips of the week
Share tips

Share tips of the week

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
10 Jul 2020