The Canada Pension Plan Investment Board (CPPIB) is taking a stake in a retail property scheme in Birmingham.
The Canadian institution acquired a 50% stake in Hammerson鈥檚 Grand Central mall in the UK鈥檚 second-largest city.
The latter said it was paying 拢335m (鈧�441m) for the mall.
Hammerson said the two investors would each hold stakes worth 拢175m once the deal was completed.
CPPIB鈥檚 managing director and head of real estate investments in Europe, Andrea Orlandi, said the joint venture demonstrates the institution鈥檚 long-term commitment to the UK and regional markets around the country.
The 435,000 sqft centre, which opened in September last year, includes a 250,000 sqft John Lewis department store.
Hammerson and CPPIB will hold the 150-year lease, with the former asset-managing the scheme, part of Birmingham鈥檚 拢750m New Street station-regeneration project.
The centre鈥檚 retail space is close to being fully let, with 96% occupancy.
Annual net rental income is 拢13.9m.
CPPIB and Hammerson are already present in Birmingham, having jointly invested in the nearby Bullring centre .
Hammerson director of retail development, Robin Dobson, recently told IPE Real Estate the 1.3m sqft Bullring 鈥� completed in late 2003 鈥� could benefit from its position, equidistant to Grand Central and HS2鈥檚 Curzon Street terminal.
鈥淭he Bull Ring is well-positioned between the station and HS2,鈥� he said. 鈥淲e certainly see the potential for strong growth.鈥�
To read more on Birmingham, see this month鈥檚
