Hammerson PLC (LSE:HMSO) shares rose 2.4% in early trading on Thursday after the property group announced a £319 million deal to acquire the remaining 50% stake in Birmingham’s Bullring and Grand Central shopping centres.
The purchase gives Hammerson complete control of one of the UK’s best-known retail destinations, with investors giving a guarded thumbs up to the move.
To help fund the deal, Hammerson is raising up to 10% of its share capital through a placing, alongside pausing its share buyback programme. The acquisition comes at a 4% discount to the centres’ latest book value and is expected to boost earnings per share immediately.
The Bullring, opened in 2003, is a landmark shopping centre at the heart of Birmingham and one of the largest in the UK.
Built on the site of a centuries-old market, the Bullring has become a regional icon and a key driver of footfall and retail spend in the city.
Along with the adjoining Grand Central, it attracts tens of millions of visitors each year, and is ranked as a super-prime retail asset.
Hammerson’s move comes after a period of strong operational performance at the Bullring, with rising footfall and sales outpacing national averages.
Its shares were up 7p at 301.4p in early trading.