Hammerson has exchanged contracts to acquire the 50% of the Bullring and Grand Central retail assets in Birmingham owned by its joint venture partner CPP Investments for £319m.
The sale price represents a 4% discount to June book value, a blended net initial yield of 6.7% and a topped-up net initial yield of 7.7%.
The acquisition will be funded through the suspension of the share buyback programme, existing cash resources and an equity placing of up to 10% of total outstanding shares.
Rita-Rose Gagné, chief executive officer of Hammerson, said: “This is an exciting milestone for Hammerson. Our investment alongside key trusted brand partners has seen Bullring deliver a standout operational performance in recent years, cementing its reputation as a top five UK destination.
“Birmingham is a thriving, growing city and our dynamic catchment continues to drive footfall and sales growth. Full control of this super prime asset allows us to consolidate the position of our Birmingham estate at the heart of the UK’s second city and explore new opportunities to deliver enhanced value and risk-adjusted returns.”
