Hammerson has recently announced its acquisition of the new Grand Central shopping centre in Birmingham for £335 million, with contracts officially exchanged with Birmingham City Council.
Advanced discussions with an existing joint venture partner on other assets are also taking place regarding a 50:50 joint venture for the future ownership of Grand Central.
Opened in September 2015 as part of Birmingham City Council and Network Rail’s £750 million regeneration project of New Street station, Grand Central comprises 435,000 sq ft of high quality prime retail space, which is anchored by a 250,000 sq ft John Lewis store.
John Clancy, Development Director at Network Rail, said: “The development of New Street Station and Grand Central significantly enhances the attractiveness of Birmingham.
“New Street Station is already the busiest train station outside of London and considered a world-class gateway delivering significant footfall to the city. We are pleased to be working with Hammerson as the new operator of Grand Central and together delivering a seamless customer experience at New Street Station.”
The centre comprises 40 premium stores, including Fat Face, Cath Kidston, Monsoon, Hobbs, The White Company. The other part of the centre is dedicated to restaurants and cafes across 20 casual dining brands such as Yo Sushi, Ed’s Easy Diner and Handmade Burger Co.
The retail section is on the cusp of fully let status with 96% occupancy. It has an annual net rental income of £13.9 million and an average unexpired lease term to break of 10.4 years.
CEO of Hammerson, David Atkins, commented: “By developing our expertise from Bullring, as well as other shopping centres around the UK, Hammerson is well placed to further enhance the consumer offer in Birmingham and achieve high returns through Skillful management of Grand Central. We are strong supporters of the future of Birmingham and this acquisition provides us with additional exposure to the city’s fast growing economy.”
Hammerson also acquired Ladywood House, a 95,000 sq ft vacant office building as part of the acquisition, which has a value of £10 million.
During the acquisition, CBRE advised Hammerson while Birmingham City Council was advised by Cushman & Wakefield.
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