Hammerson plc and Land Securities Group PLC have agreed to acquire Morley Fund Management’s one-third interest in the Bristol Alliance and will progress the Broadmead expansion scheme as a 50:50 joint venture.
The £500 million mixed-use development, which received detailed planning consent in December 2003, totals 139,350 m² (1,500,000 ft²), including 83,610 m² (900,000 ft²) of retail space. The scheme will provide new retail, cafes, bars, restaurants, residential apartments and public spaces in the heart of Bristol, as well as leisure facilities and offices.
A joint project team has been created between Hammerson and Land Securities to advance the scheme, building on the successful working relationship established between the two companies at Bullring, Birmingham.
Morley will be paid for its investment in the scheme to date. In addition, the Bristol Alliance will acquire a number of other properties currently owned by Morley in Broadmead. Morley will also sell to The Mall Fund (a limited partnership it set up in 2002 with Capital & Regional) its long leasehold interest in the Galleries Shopping Centre, which does not form part of the Broadmead expansion. All three companies are committed to promoting central Bristol as the region’s premier retail destination.
John Richards, Chief Executive of Hammerson, added: “We are delighted to have increased our interest in this major development which continues our programme of retail-led regeneration schemes.”
Francis Salway, Chief Executive of Development at Land Securities, commented: “We have made very good progress in advancing the Broadmead development and obtained all necessary planning consents. We now look forward to working with Hammerson and the City Council to deliver this exciting new development.”
Ian Womack, Managing Director, Property, Morley Fund Management, said: “We have decided to reposition our investment in Bristol by selling our interest in the Bristol Alliance to Land Securities and Hammerson and selling The Galleries Shopping Centre into The Mall, the highly successful Limited Partnership set up by Morley Fund Management and Capital & Regional in 2002. I am confident that The Mall will continue to work with Bristol Alliance in enhancing Bristol’s retail offer and promoting the entire city.”
It is anticipated that works will commence on site in mid 2005 and the new development will open in 2008.