Merry Hill centre bought in £407.7m deal

The Merry Hill shopping centre has been bought in a £407.7 million takeover by property group Intu.

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An areial view of Merry Hill shopping centre which has been bought by Intu

The deal gives Intu the half share in the Brierley Hill-based shopping centre that had been owned by Westfield.

The other half is retained by Australian investment group QIC. The agreement is part of a £867.8m property deal that sees Intu take over complete ownership of Westfield’s Derby shopping centre and Sprucefield retail park in Northern Ireland.

David Fischel, chief executive of Intu, said he was delighted to establish the partnership with QIC at Merry Hill. “The transaction is a rare and attractive opportunity to acquire a further two prime shopping centres in line with our strategy to focus on the UK’s largest and most successful destinations,” he said.

“The acquisition strengthens Intu’s position as the leading owner, developer and manager of prime UK shopping centres filling in gaps in our national coverage and extending the footprint of our nationwide consumer facing brand and digital strategy. We are delighted to establish a partnership with QIC, a major global investor, at Merry Hill.”

The 1.4 million sq ft shopping centre now joins the likes of Manchester’s Arndale and Trafford centres in the Intu’s 18 million sq ft stable of retail and leisure sites, valued before today’s deal at £7.6 billion. They include 17 of the UK’s top 25 shopping destinations.

Westfield had owned the centre since 2004 following the takeover of previous owners Chelsfield.

Westfield Group co-CEO Steven Lowy, said: “Today’s announcement continues the strategic repositioning of the international portfolio in line with our focus on investing and operating iconic retail destinations in major world cities.”

Intus says the three sites will generate annual rents of £54.9 million to £22.6 million from Merry Hill alone.

Comments for: "Merry Hill centre bought in £407.7m deal"

bobwolf101

Won't get me going there again. Never any parking spaces the last couple of times I went.

StJoe

You have to know where to look and be prepared to walk, or cross over a road. Back of pc world, or the back of Toys R Us before 12 at weekends and any time during the working day.

barry.davies.921

Much as I love the town of my early years I don't think it is what you could call a major world city, after all it is a Town for a start off. Maybe they are considering building a Steel works there?

Washburn

I am sure this will be the start of car park charging. Hopefully it could then be the death knell for Merry Hell and get shoppers coming back to Dudley. Oh hang on though the idiots who run Dudley council don't care about the town..Oh well it was a nice idea..

StJoe

Never happen. The people who run merryhill know how to keep it successful unlike Dudley council who only know how to run a town into the ground. Even if parking charges came in, which I personally don't think they will, that would still mean shops would have to return to Dudley town centre. Can you see the likes of top chain stores that are in the Merryhill centre returning ? Can't see it myself.

steve.briscoe1

Westfield sold for obvious reasons , it could not make any money out the centre because the type of shoppers it attracted . Places like Manchester and Birmingham have passed it by It also had its hand tied with carpark charging as 7 retailers at the centre have a no carpark charging agreement on there leases.. for a few years now the centre as slowly been going down hill the car parks are alot emptier these days, internet shopping has had a effect on it like all shopping destinations .

Dudley Regeneration Group

StJoe

Who' is kidding who here? Go up on a weekend and take a look around. You struggle to park. The place is thriving. Now go up Dudley and take a look. Dudley regeneration? Have a day off!!

charlie17

All I can say is "so what" whoever owns it will still rent out the shops and people will still go to do their shopping. Come on E&S let's have something interesting to comment on for example The Budget or possibly the revelations about the whistleblower at New Cross and the absolutely enormous salary of the Chief Executive who failed at another hospital

JJ

Hopefully they'll improve the parking situation. If that means them slapping a parking charge though I'll never go there again.

Ben W

I've never had a problem parking at anytime of the day or year at merry hill, always guaranteed a space on the multistorey.

Some people just moan about anything. Victor Meldrews!

steve.briscoe1

Joe all major shopping centres are full on a saturday.its monday to friday some carparks are empty unlike other centres who have more than just retail.

Dudley Regeneration Group