Property firm Hammerson has sold half of the Grand Central shopping centre in Birmingham to one of Canada’s biggest pension funds for £175m.
Hammerson acquired the development - home to John Lewis, Fat Face, Monsoon and Hobbs - from Birmingham City Council for £335m at the end of January.
It has now entered into a joint venture agreement with the Canada Pension Plan Investment Board (CPPIB), though Hammerson will manage the shopping mall on behalf of the venture.
“Through this joint venture, we are once again demonstrating our long-term commitment to the UK, and in particular, to regional markets around the country,” said Andrea Orlandi, CPPIB’s managing director and head of real estate investments for Europe. “In addition, we are pleased to expand our strong relationship with Hammerson and look forward to working with them to deliver a world-class shopping destination in Birmingham.”
Hammerson, which owns several UK shopping centres, including the Bullring in Birmingham and Brent Cross in London, yesterday reported a 2.3% increase in like-for-like net rental income to £318.6m for the year to December 31.