In a strategic move to solidify its presence in Birmingham and strengthen its UK retail portfolio, Hammerson has announced the acquisition of the remaining 50% stake in Bullring and Grand Central from its joint venture partner. The deal, valued at £319 million in net cash, gives Hammerson full ownership of two of the UK’s top-performing retail destinations.
The acquisition is being funded through a combination of suspended share buybacks, existing cash reserves, and an equity placing of up to 10% of outstanding shares.
“This is an exciting milestone for Hammerson,” said Rita-Rose Gagné, CEO of Hammerson. “Full control of this super prime asset allows us to consolidate the position of our Birmingham estate at the heart of the UK’s second city and explore new opportunities to deliver enhanced value and risk-adjusted returns.”
Bullring and Grand Central have seen a strong rebound in footfall and sales post-pandemic, with 33 million visitors in 2024 and footfall rising by 3%. Sales grew 11% year-on-year, making it the strongest performer in its peer group, according to Lloyds Bank. In the first half of 2025, footfall was up 5%, including an 8% surge in Q2 and a 12% year-on-year increase in June alone. Total sales grew 6% in H1 2025, supported by a 4% rise in like-for-like sales and a 5% jump in Q2.
With strong demand for prime retail space, occupancy remains tight and competition among brands is intense. In the first half of the year, principal leasing deals at Bullring were signed at 25% above previous passing rents. The destination also achieved 12% like-for-like gross rental income growth in H1, and Hammerson anticipates continued strong rental growth throughout the second half of 2025.
Grand Central, located above Birmingham New Street station, has seen a 3% year-on-year increase in occupancy, driven in part by spillover demand from Bullring. Food and beverage units have proven particularly lucrative, achieving sales densities of £560/ft² and maintaining affordable rents of around £50/ft². Grand Central welcomed 14 million visitors in 2024 and 7 million in H1 2025, highlighting its role as a high-traffic retail and transit hub.
Beyond immediate performance gains, Grand Central offers significant redevelopment potential. Roughly 50% of the space, formerly occupied by John Lewis, is currently vacant. A full strip-out was completed in 2023, and planning approval is in place for “The Drum” — a £100 million office-led mixed-use redevelopment that promises to further diversify the asset’s income stream.
Hammerson’s Birmingham ambitions extend beyond retail. The company already owns Martineau Galleries, a 7-acre regeneration site adjacent to the upcoming HS2 Curzon Street station, with planning permission secured for 1,100 homes and up to 1.3 million ft² of commercial space. Enabling works are expected to commence in early 2026, with further investment likely from 2027.
Thanks to this acquisition, operational growth, and tight cost management, Hammerson projects 17% gross rental income growth for FY25 and EPRA earnings of £102 million, putting it on track to achieve its medium-term financial goals.
