Investor strikes deal for 50-50 partnership at Bullring

The Canada Pension Plan Investment Board (CPPIB) has trebled its stake in Birmingham’s Bullring Shopping Centre to create a 50-50 partnership with Hammerson.

The Canadian investor has acquired an additional 33.3% stake from Nuveen Real Estate, confirming reports from May that a deal was imminent.

CPPIB first invested in the Bullring in 2013, when it took a one-sixth stake. It now values its exposure at £280m.

Thomas Jackson, head of UK real estate at CPP Investments, said: “We are confident that this additional investment into a best-in-class shopping centre, situated in central Birmingham, a strong and growing city, will deliver strong risk-adjusted returns for our contributors and beneficiaries.”

CPP Investments and Hammerson already operate a joint venture running Birmingham’s Grand Central development, while CPP’s joint venture with Federated Hermes funded the first phase of Paradise and is behind the One Centenary Way development.

Bullring has 1.4m sq ft of retail and hospitality space, making it one of the largest shopping centres in the UK.

Hammerson will continue to undertake all asset management activities at Bullring.

Simon Travis, group investment director at Hammerson, added: “This partnership clearly demonstrates the importance of Bullring and Grand Central as thriving destinations, offering our communities and visitors an outstanding experience with dining, events, retail, and entertainment for generations to come.”