Hammerson is set to buy a 50% stake in Manchester Arndale shopping centre for around £220 million.
The stake had been taken on by investors after malls group Intu collapsed into administration in 2020 and was offered for sale initially via a right of first refusal to M&G Real Estate, which owns the remainder. JLL has been acting on behalf of the former Intu revolving credit facility investors on the formal sale. Green Street News revealed Hammerson's move for the stake.
The shopping centre comprises 1.96 million square feet with key tenants including Apple, Next, Boots, JD Sports and Zara.
Sovereign Centros from CBRE, on behalf of M&G Real Estate, and Global Mutual, act as joint asset managers of Manchester Arndale and New Cathedral Street while Metis Real Estate and Time Retail Partners are the centre’s retained letting agents, with Green & Partners retained lease advisory agents.
Hammerson said: “We do not comment on rumour or speculation.” JLL declined to comment.
At its full year results in February, Hammerson said its priorities are driving destination outperformance, maximising value from its existing land opportunities and increasing its scale with a focus on high-quality, prime retail-led destinations. It is also reviewing a bid for the circa £500 million Metrocentre in Gateshead and has been buying out its joint venture partners at major malls such as Brent Cross and Bullring.