Bullring

Client

• Nuveen Real Estate

Client Industry

• Investment Management

Services Provided

• Shopping Centre & Retail Investment Agency 
• Occupational Agency

Location

• Birmingham, UK

Size/Value

• Confidential

Divison Involved

• UK Investment

Date

• November 2021

Challenge
Savills were instructed by Nuveen Real Estate to present a once in a generation opportunity to acquire a 33.33% joint venture partnership interest in one of the UK’s super-regional shopping centres, extending to over 1,300,000 sq ft of prime retail and leisure provision. 

A distinct challenge for the Savills Shopping Centre & Retail Investment team was to showcase and optimise the multi-faceted asset, including but not limited to: strength of tenant line up, income profile and the asset’s ESG and sustainability credentials, but also to demonstrate the strong demand from a range of occupiers, retailers and otherwise across the estate. The former Debenhams also had exciting repurposing options which needed to be extensively explored and sensitively presented. 

Solution
Savills Shopping Centre & Retail Investment team completed a detailed investment appraisal and cash flow modelling to reflect projected leasing activity, income growth, capital expenditure and key asset management initiatives as included within the joint venture’s annual Business Plan. Investors interested in acquiring the stake would be buying into the joint venture and thus the partnership’s business plan - it was therefore critical to reflect the intentions of the joint venture and the majority partner’s (Hammerson) asset management strategy to correctly value the interest. 

Results
The success of the sale not only achieved a positive exit for Nuveen Real Estate from the partnership, but also presented the new 50:50 partnership structure the ability to progress their collaborative and ambitious business plan. Hammerson and CPPIB already hold a 50:50 partnership interest in the adjoining Grand Central, meaning the new Bullring structure can work effectively in conjunction with Grand Central.

This sale of this interest in Bullring was the only stake in a shopping centre joint venture partnership traded during 2022 and represents over 10% of the total capital value of shopping centres (or interest therein) traded across 2022.