Hammerson, the £2 billion UK real estate investment trust, has launched a £188 million share issue to fund the £218 million acquisition of a 50% stake in the Manchester Arndale shopping centre.

Hammerson is buying from Palma Arndale BidCo, which represents the investor consortium that bought the holding when its previous owner Intu collapsed in 2020.

“As we have completed five joint venture buyouts in the UK and Ireland since November 2024, our emphasis has naturally turned to external acquisitions,” said Hammerson.

“Geographically, there is a well-signposted pipeline of assets in the UK, one of our core markets. France is also a strong home market for us and, with our European platform, we would be open-minded on select European markets with attractive demographics and macroeconomics, high transparency and liquidity.

“Manchester Arndale delivers on all of these characteristics. It is a top tier city centre destination, with high footfall and sales, and an affluent, growing catchment area.

“The occupier mix is strong with a high overlap with the existing portfolio, yet with ample opportunity to bring our expertise to bear to drive income and value creation in the years to come.

“We expect the acquisition to be immediately accretive to EPRA earnings per share, funded by the associated equity placing to enhance our balance sheet strength.”

Hammerson CEO Rob Wilkinson said: “Hammerson’s strategy is now naturally broadening to external acquisitions.

“Manchester Arndale is fully in line with our criteria for increasing our scale, and is a retail-led destination at the heart of one of Europe’s leading cities, benefiting from attractive demographics and a positive economic outlook.

“The Arndale represents Hammerson’s first major external acquisition in over a decade.

“What was already proving to be a strong underlying performance this year is now further enhanced by today’s acquisition.”