Hammerson acquires remaining Bullring & Grand Central stake for £319m
Hammerson has reached an unconditional agreement to acquire the 50% stake it does not own in Birmingham’s Bullring & Grand Central for £319m.
The real estate investment trust said the acquisition will be funded through the suspension of its share buyback programme, existing cash resources, and an equity placing of up to 10% of total outstanding shares.
Hammerson said the purchase was completed at a 4% discount to the June book value, and represents an additional annualised net rental income of around £22m.
Since 2021, Bullring has benefited from over £30m of landlord investment and £75m occupier investment to reposition the former Debenhams unit and bring in new retail concepts, upsizes, and offers from the likes of M&S, Inditex, Sephora, and JD Sports, alongside new leisure provision including TOCA Social and Lane7.
At Grand Central, located above Birmingham New Street station, occupancy is up by 3% year-on-year, reflecting spillover demand from Bullring where space is also at a premium. Food and beverage is a particular feature of the scheme, due to its location.
Hammerson said Grand Central also represents a compelling redevelopment opportunity. Around 50% of the space, representing a former John Lewis department store, is currently vacant. However, a strip-out was completed in 2023 and planning is in place for the group’s Drum concept – an office-led mixed-use redevelopment of the space.
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.”
This announcement comes as Hammerson releases its results for the first half of 2025, a period during which it recorded an increase in like-for-like gross rental income of 5%, with like-for-like net rental income up by 4%.
During the period, the group’s total gross rental income was up by 11%, while net rental income increased by 10%. Hammerson’s portfolio valuation was also up, by 11% to £3.0bn.