Canadian investor, the Canada Pension Plan Investment Board (CPPIB), is set to become an equal owner of Birmingham’s Bullring shopping center, alongside UK property giant Hammerson. CPPIB, which currently holds a 16.7% stake in the mall, will acquire an additional 33.3% from global property company Nuveen Real Estate for approximately £170 million. This move will raise CPPIB’s ownership stake to 50% and values the Bullring at £510 million, a significant decrease from its previous valuation of £921 million in 2013.
Graeme Eadie, senior vice-president and head of real estate investments at CPPIB, expressed his excitement about the deal, highlighting the opportunities it brings for the company. He emphasized that this investment aligns with CPPIB’s retail strategy in the UK, which focuses on high-quality assets in prime locations with strong growth potential. Eadie also praised the successful collaboration between CPPIB and Hammerson on previous investments, highlighting their positive working relationship.
Meanwhile, Hammerson will retain overall responsibility for the management and development of the Bullring. The CEO of Hammerson, David Atkins, sees this acquisition as a valuable opportunity to strengthen their position in one of the UK’s most thriving shopping destinations at an attractive entry price. Atkins believes that the Bullring’s iconic status and exceptional performance since its opening in 2003, combined with the increasing demand for immersive shopping experiences, will contribute to its future success.
The Bullring, home to popular department store Selfridges, will soon welcome another major retailer, M&S, on the site of the former Debenhams store. Spanning 67,000 sq ft, this addition further enhances the appeal of the shopping center. In addition to the Bullring, CPPIB and Hammerson jointly own the adjacent Grand Central mall. CPPIB also possesses the Trafford Centre in Manchester and holds a 25% stake in Westfield Stratford in east London, solidifying its significant presence in the UK retail market.
Links:
– For more information on CPPIB’s investments in the UK retail market, visit CPPIB’s UK Retail Sector Investments.
– To explore the Bullring’s official website and learn about its retailers and offerings, click here.
