Bullring owner set to buy rival to create £21bn company
The owner of Birmingham’s Bullring and Grand Central shopping centres has announced plans to acquire rival retail property group intu – owner of the Merry Hill Shopping Centre – in a move that will create a £21bn company.
Hammerson, which owns other shopping centres in Stoke-on-Trent and the East Midlands, released a statement this morning saying the deal would “create a pan-European portfolio of high-quality retail and leisure destinations, with enhanced exposure to high-growth markets and which will benefit from evolving consumer trends”.
Both boards said they believed that following the acquisition, the enlarged group would be better placed to enhance its position in its geographic markets and across its retail formats, with a more efficient and adaptable platform allowing it to respond to fast changing consumer preferences and retail trends.
Hammerson said that, as part of the deal, some properties would be sold, which would result in a £2bn windfall for the company.
The new company will be led by David Atkins, chief executive, and Timon Drakesmith, chief financial officer.
David Tyler, chairman of Hammerson, said: “This transaction will deliver real value for shareholders. The financial strength of the Enlarged Group and its strong leadership team will make it well-placed to take advantage of higher growth opportunities on a pan-European scale.”
David Atkins, chief executive of Hammerson, said: “This marks an exciting milestone in the history of Hammerson. Bringing together the high-quality portfolios of both companies establishes Hammerson as a larger, leading European retail REIT, enhances shareholder returns and supports opportunities for long-term growth. The acquisition creates a leading pan-European platform of desirable retail and leisure destinations which are better positioned to serve the needs of our retailers, excite our customers and support our partners and communities. I hold Intu’s high-quality centres in high regard and I look forward to working with a strengthened team to enhance the performance of our entire portfolio.”
John Strachan, chairman of Intu and proposed senior independent director of the enlarged group, said: “A combination of both Intu and Hammerson will create a more resilient, diversified and stronger group that we believe will benefit all our stakeholders. Intu offers high-quality retail and leisure destinations in the UK and Spain, which when merged with Hammerson’s own top-quality assets in the UK, in France and in Ireland, present a highly attractive proposition for retailers and shoppers in Europe’s leading cities. I am proud of the financial and operational success that Intu’s management team has delivered and pleased to see that the intu brand will continue.”
