West Midlands key shopping hub, Merry Hill, is up for sale. And given the strong performances of major UK malls, there should be keen interest, even with a price tag exceeding £250 million. 

The 1.4 million sq ft retail and leisure complex in Brierley Hill has enjoyed a successful year “as one of the UK’s top 10 super-regional destinations”, its operator Sovereign Centros, part of CBRE, recently said. Record footfall, up 5.6% year-on-year so far, is expected to exceed 15.5 million this year.

Knight Frank is handling the sale on behalf of the owners, a lender consortium including Wells Fargo and AXA Investment Management, since the collapse of the previous outright owner Intu Properties, which went into administration in 2020. 

Merry Hill, which features more than 175 brands, has regularly been a top performer in the UK’s unofficial mall league table. It has undergone a £125 million investment programme in recent years and boasts 96%+ occupancy.

Its line-up of major brands includes a refurbished 100,000 sq ft M&S, further investment from anchor tenants such as H&M and Footasylum (which tripled its store size), and new occupiers including the England debut of Australia-based international retailer Harvey Norman.

A new £15 million leisure quarter has also contributed to rising footfall. The wider redevelopment has added more than 300,000 sq ft of new and upgraded space.

The 92-acre site also includes a fully-let retail park and has introduced environmental upgrades, including 2,700 solar panels generating 25% of its electricity use and over 100 electric vehicle charging points.

In a statement, the Merry Hill board said: “The last few years have been transformational for Merry Hill, as investment, proactive asset management, and an effective leasing programme have combined to return it to its rightful place as a top 10 UK mall. Merry Hill is primed for the next stage of its journey, with several initiatives planned to cement its position in the super-regional hierarchy. Consequently, now is the right time for a new owner to take on an asset that is thriving to realise further value.”

If evidence was needed on the vibrancy of the UK mall sector, especially in the Midlands region, property giant Hammerson said in July it is to acquire the remaining 50% of Birmingham’s Bullring and Grand Central for £319 million cash.