Bullring owner offloads Birmingham site in £60m sale

Battery Retail Park

Retail property investor Hammerson has offloaded one of its Birmingham sites in a deal worth almost £60m.

The company, which is an investor in the Bullring and Grand Central, has exchanged contracts for the sale of Battery Retail Park in Selly Oak to Midlands-based insurance giant NFU Mutual for £57.5m.

Hammerson said the deal was part of its ongoing disposal strategy and the proceeds would be invested in the group’s premium estate.

The retail park, which covers a total of 12,600m2, includes tenants such as Next, TK Maxx, Homebase, Sports Direct and Halfords.

Hammerson said the site had benefitted from a proactive asset management strategy which had reconfigured the park and implemented a more diverse tenant mix.

The sale price represents a net initial yield of 6% and is in line with December 2016 book value.

David Atkins, CEO Hammerson, said: “We have successfully reconfigured Battery Retail Park and improved the retail mix. There continues to be good investor demand for relevant retail destinations with solid brands and modern retailer units.

“This transaction is in line with our ongoing disposal strategy which saw the business achieve more than £400m of disposals in 2017 and provides the opportunity to invest in our development and premium outlet sectors.”

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