In more than a nod to the strong performance the UK’s major shopping centre sector is enjoying, Hammerson is to acquire the remaining 50% of Birmingham’s Bullring and Grand Central for £319 million cash.
CEO Rita-Rose Gagné said of the purchase: “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.”
Hammerson said the Bullring continues to benefit from over £30 million of landlord investment alongside £75 million of occupier investment since 2021, “delivering standout operational and financial performance in recent years”.
In 2024, footfall was up 3% to 33 million visitors, and sales rose 11%. In H1 25, footfall was up 5% and Q2 was “exceptionally strong”, up 8%, with June alone up 12% year-on-year.
Like-for-like sales there have followed a similar trend, up 4%, with Q2 up 5%. Total sales were up 6% in H125.
It now intends to raise up to 10% of existing issued share capital through an institutional placing to finance the purchase to “take full control of this super prime destination”.
The purchase also allows Hammerson to upgrade its FY25 guidance it said on Thursday as it also announced strong half-year results with “demand for our space never stronger” and it enjoyed “another period of record leasing”.
Results for the first half of 2025 showed across-the-board gains including increases in like-for-like gross rental income of 5% and like-for-like net rental income, up 4%.
During the period, the group’s total gross rental income was up by 11%, while net rental income increased by 10%. Hammerson’s portfolio valuation was also up, by 11% to £3 billion.
It said earnings guidance for FY25 was raised to around £102 million from around £95 million, and remains “on track to achieve its medium term financial framework”.
Gagné added that the H1 performance was driven by its investments in recent years in repositioning and placemaking, and data and analytics “which allows us to better understand and anticipate the evolving behavioural trends of consumers and occupiers”.
She added: “The consumer spend where we have focused our portfolio is resilient and growing for the right product in the best destinations, as brands are shifting towards fewer, higher-performing spaces.”
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