Hammerson has sold a 50% stake in the Grand Central shopping centre in Birmingham to the Canadian Pension Plan Investment Board (CPPIB).
The joint venture will see Hammerson act as asset manager on the 435,000 sq ft scheme at the redeveloped New Street station.
Hammerson’s total acquisition cost for the 50% stake will be £175m.
Hammerson exchanged contracts to buy the mall from Birmingham City Council for £335m last month and today completed the deal.
Grand Central, which opened in September 2015, is anchored by a 250,000 sq ft John Lewis department store. It was developed by Network Rail and Birmingham City Council as part of the £750m New Street Station regeneration project.
The retail space is close to fully let with 96% occupancy and produces an annual net rental income of £13.9m. The current weighted average unexpired lease term to break is 10.4 years. The acquisition price represents a yield of 4%, and the expected five year IRR is 7-8%.
8 March 2016
15 February 2016