Hammerson takes full control of two centres

RETAIL property group Hammerson is to buy out its partner in Birmingham's Bullring and Grand Central shopping centres for £319 million.

- TAMLYN JONES Business Staff

The listed firm will acquire the 50% stake owned by Canadian pension fund CPP Investments, meaning it will become the sole landlord of the two connected, city centre retail hubs.

Hammerson said it would partly fund the acquisition via a share placing which represented up to 10% of its existing issued share capital.

The remainder would be financed from existing cash resources and the suspension of its ongoing share buyback programme, according to a statement posted on the London Stock Exchange.

The acquisition is expected to be completed in the next few weeks and is not conditional on the share placing.

Chief executive Rita-Rose Gagné said: "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.