The Birmingham Alliance, a partnership between Hammerson plc, Henderson Global Investors Ltd and Land Securities Group PLC, has exchanged contracts for the sale of its leasehold interest in Martineau Place, Birmingham, to a private company to raise sale proceeds of £93 million net of costs. It is anticipated that completion will take place in early September 2004.
Under the terms of the transaction, The Birmingham Alliance may be required over the next three years to make additional payments to the purchaser, dependent on the level of rents receivable. The estimated cost is approximately £400,000, with the total amount payable capped at £1.8 million.
Martineau Place, which includes 16,300 m² (175,400 ft²) of retail and 6,800 m² (73,200 ft²) of offices, was developed by The Birmingham Alliance and opened in 2001. As at 30 June 2004, the scheme had annual passing rents of £6.3 million.
Commenting on behalf of The Birmingham Alliance, Lawrence Hutchings, Senior Portfolio Manager at Henderson said:
“We are pleased with the sale of Martineau Place, which focuses our investment in Birmingham on the successful Bullring scheme and on Martineau Galleries, where we see the potential for further growth.”
The Birmingham Alliance was advised by DTZ and Frank Warwick.
Source: Hammerson plc