Hammerson pitches in with Hines

  Hammerson has approached US developer Hines to partner it on one of Birmingham’s largest regeneration projects.   The REIT is in talks with Hines to jointly bring forward redevelopment of the city’s 21-acre wholesale markets site. A major mixed-use scheme will be developed over 10-15 years.   The markets form part of Birmingham’s 2,000-acre Big City Plan and are just 500m from the 1.2m sq ft Bullring shopping centre, which was developed by Hammerson and its Birmingham Alliance partners Land Securities and Henderson Global Investors in 2003.     Sources close to Hammerson said the group was keen to increase its investment in Birmingham, either on its own or through the Alliance. Hammerson also wants to control what is developed around the Bullring so as not to cannibalise trading at the shopping centre.   “It makes sense for Hammerson to get on board with Hines and have a partnership approach as the wholesale markets site sits next to the Bullring and would be a natural extension to the centre,” said one source.   Whether the partnership is with the Birmingham Alliance or Hammerson depends on LandSec’s success in selling its 33% stake in the Bullring, the source added.   LandSec has been trying to exit the shopping centre since April last year, when it put a £300m price-tag on its stake.   Although Hines’ involvement in the markets site has not yet been confirmed by landowner Birmingham city council, it has been in pole position as the local authority’s development partner since February 2008.   Last month, the council approved £100m plans to relocate the existing wholesale markets to a new 1m sq ft purpose-built scheme at PRUPIM’s The Hub in Witton.   The relocation of the markets – the largest wholesale markets in the country – is scheduled to be complete by 2011.   Hammerson and Hines both declined to comment.   lisa.pilkington@rbi.co.uk