CPP Investments sells 50% stake in Birmingham JV to Hammerson

CPP Investments has agreed to sell its 50% stake in the Bullring and Grand Central Shopping Centres in Birmingham, UK, to its joint venture partner, Hammerson, for £319 mln (€369 mln).

Bullring & Grand Central

The majority of the transaction involves the Bullring, which was sold at book value with a net initial yield of 6.4% and a topped-up net initial yield of 7.1%. CPP Investments will receive net proceeds of approximately C$615 mln (€388 mln), with the deal expected to close in August 2025.
CPP Investments initially acquired a 16.7% shareholding in the Bullring in 2013 and increased its holding to 50% in 2022. They invested in Grand Central in 2016.
Over the past 12 years, in partnership with Hammerson, CPP Investments implemented a value-creation plan for the Bullring, raising occupancy from 86% to 95% and increasing net operating income by 23% since 2022. Grand Central is now being prepared for repositioning following tenancy changes during COVID-19.
Tom Jackson, managing director, Real Estate Europe, CPP Investments, commented: "The Bullring has been a standout performer in our UK portfolio since our upsize in 2022, and we have worked closely with Hammerson to reposition the asset, increase occupancy, and attract new anchor tenants. Today's sale agreement allows CPP Investments to crystallize the strong performance of Bullring and realize value created, delivering significant returns for the CPP's 22 million contributors and beneficiaries. With Hammerson taking ownership, both assets are well-positioned for a promising next phase under their experienced guidance."
Rita-Rose Gagné, CEO of Hammerson, added: "This is an exciting milestone for Hammerson. Our investment alongside key trusted brand partners has seen Bullring deliver a standout operational performance in recent years, cementing its reputation as a top five UK destination. Birmingham is a thriving, growing city, and our dynamic catchment continues to drive footfall and sales growth. 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."
In connection with the acquisition of the 50% stake, Hammerson has announced plans to raise capital through an institutional placing of up to 10% of its existing issued share capital. The placing will involve a non-pre-emptive offering of new ordinary shares at a set "Placing Price" and will be executed through an accelerated bookbuild.
The Bullring, a prime retail destination in Birmingham, boasts 120,774 m² of retail space. Since 2021, over £30 mln (€35 mln) has been invested by the landlord, alongside £75 mln (€87 mln) from occupiers, to enhance the centre. Key improvements include repositioning the former Debenhams unit and attracting new retail concepts, expanded stores, and offerings from major brands like M&S, Inditex, Sephora, and JD Sports. These investments have collectively secured nearly £130 mln (€150 mln) in contracted rent to the first break and generated an Internal Rate of Return exceeding 40%.
Grand Central is experiencing increased demand for its limited space, with occupancy up 3% year-on-year, partly due to high demand and limited availability at the neighboring Bullring. The venue benefits from high footfall with over 14 million visitors in 2024 and 7 million in H1 2025. Grand Central also presents a significant redevelopment opportunity, particularly the approximately 50% of space formerly occupied by John Lewis & Partners. Planning permission is in place for "the Drum concept," an office-led, mixed-use redevelopment project with a gross development value of approximately £100 mln (€116 mln) at 100% occupancy.