Hammerson has reached an unconditional agreement to acquire the 50% stake it does not already own in Birmingham’s Bullring & Grand Central for €377 million.
The London-listed real estate investment trust said the deal will be financed through the suspension of its share buyback programme, existing cash reserves, and an equity placing of up to 10% of total outstanding shares. The purchase was completed at a 4% discount to the June book value and is expected to generate an additional annualised net rental income of roughly €26 million.
Since 2021, the Bullring has undergone significant transformation, supported by more than €35 million in landlord investment and €89 million from tenants. Upgrades have included the repositioning of the former Debenhams store and the introduction of new retail formats and flagship outlets for M&S, Inditex, Sephora, and JD Sports, as well as leisure concepts such as TOCA Social and Lane7.
At Grand Central, located above Birmingham New Street station, occupancy has risen 3% year-on-year, driven by spillover demand from the Bullring, where space remains scarce. The scheme’s strong food and beverage offering benefits from its central location. Hammerson also sees major redevelopment potential: around half of the space — formerly occupied by John Lewis — is vacant. A strip-out was completed in 2023, and planning consent is in place for “The Drum,” an office-led mixed-use redevelopment.
“This is an exciting milestone for Hammerson,” said CEO Rita-Rose Gagné. “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.”
The announcement coincided with Hammerson’s half-year 2025 results, which showed like-for-like gross rental income up 5% and net rental income up 4%. Total gross rental income rose 11% year-on-year, while net rental income increased 10%. The portfolio valuation climbed 11% to €3.55 billion.
