CPP Investments buys stake in Birmingham shopping centre from Nuveen

CPP Investments buys stake in Birmingham shopping centre from Nuveen

Canada Pension Plan Investment Board (CPP Investments) has acquired an additional 33.3% stake in Bullring Shopping Centre, Birmingham from Nuveen Real Estate.

Following this acquisition, CPP Investments increased its ownership stake in the shopping centre to 50%.

CPP Investments’ total exposure to Bullring will be approximately £280 million (C$432 million), the company said.

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

Bullring is one of the largest shopping centers in the U.K., spanning 1.4 million square feet with approximately 180 retail and hospitality tenants of leading brands and experiences on offer, with Selfridges as a key anchor tenant.

Bullring, located in a prime central location in Birmingham’s city centre, attracts approximately 40 million visitors annually. Birmingham is the U.K.’s second largest city, after London.

“We look forward to operating in a 50:50 partnership with Hammerson, who are a long standing and valued partner for CPP Investments,” said Thomas Jackson, Managing Director and Head of Real Estate UK, CPP Investments. “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.”

Since CPP Investments’ initial investment in 2013, Bullring has continued to innovate and adapt to changing consumer trends and has established itself as a top-5 shopping destination in the U.K.

“Hammerson are pleased to continue our relationship with CPP Investments within our flagship Birmingham Estate,” said Simon Travis, Group Investment Director and Managing Director of Premium Outlets, Hammerson Plc. “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.”

CPP Investments and Hammerson have a longstanding relationship in U.K. real estate, including in the Birmingham Grand Central development.