22nd Jan 2016 07:07
LONDON (Alliance News) - Property developer Hammerson PLC on Friday said it has agreed to acquire the new Grand Central shopping centre in Birmingham for GBP335.0 million.
Hammerson said the purchase will be backed by an expanded acquisition credit facility of GBP1.1 billion.
In addition, the FTSE 100-listed group said it is in advanced talks with an existing joint venture partner on other projects the company owns, about entering into a 50:50 venture for the future ownership of the shopping centre. Hammerson didn't name the partner.
The new shopping centre opened in September 2015 and provides 435,000 square foot of retail space, Hammerson said. It was developed as part of the GBP750.0 million regeneration of the New Street station site in Birmingham.
The retail space in the building is 96% let, Hammerson said, with an annual rental income of GBP13.9 million.
"The acquisition of Grand Central, a highly-prized trophy asset in the UK's second city, is fully aligned with Hammerson's strategy of owning top-performing retail destinations in prime locations, as demonstrated by our recent transactions in Ireland and growing exposure to European premium outlets," said Hammerson Chief Executive David Atkins.
By Sam Unsted; [email protected]; @SamUAtAlliance
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