Hammerson has exchanged contracts to buy Grand Central Shopping Centre in Birmingham.
It paid £335m – a 4% net initial yield – to Birmingham City Council and Network Rail for the newly built scheme.
Covering 435,000 sq ft of prime retail space, the shopping centre opened in September last year as part of a major refurbishment of Birmingham’s main rail station.
Hammerson beat off competition from both British Land and Grosvenor, which also bid. Hammerson’s offer was accepted in September last year.
Tenants include Joules, Kiehl’s, Jo Malone, L’Occitane and MAC and restaurants Carluccio’s, Yo Sushi and Pho.
Total acquisition costs including fees will be £350m for the 150-year headlease.
Hammerson will fund the purchase using an expanded credit facility of £1.1bn which matures in March 2017.
Cushman & Wakefield advised Birmingham City Council on the sale of the shopping centre; CBRE acted for Hammerson.
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