Merry Hill Mall Hits Market for £250 Million Amidst Retail Rebound
One of the West Midlands’ most prominent retail and leisure destinations, Merry Hill, has officially been put up for sale. The substantial 1.4 million sq ft complex, located in Brierley Hill, carries an expected price tag exceeding £250 million, a sum that market analysts believe will attract significant interest given the robust performance observed across major UK shopping centres in recent times.
Operated by Sovereign Centros, part of CBRE, Merry Hill has consistently been lauded as “one of the UK's top 10 super-regional destinations.” The centre has enjoyed a particularly strong year, reporting record footfall figures, up 5.6% year-on-year, and is projected to welcome over 15.5 million visitors by the end of this year. This strong performance places it regularly among the top performers in the UK’s unofficial mall league table, underpinned by a high occupancy rate exceeding 96%.
The sale is being managed by Knight Frank on behalf of a lender consortium, which includes major financial institutions such as Wells Fargo and AXA Investment Management. This consortium took ownership following the administration of the previous outright owner, Intu Properties, in 2020.
Merry Hill’s current appeal is further boosted by a significant £125 million investment programme undertaken in recent years. This has seen extensive upgrades, including a refurbished 100,000 sq ft M&S store, substantial further investment from anchor tenants like H&M and Footasylum (which tripled its store size), and the successful introduction of new occupiers, notably the England debut of the Australia-based international retailer Harvey Norman. A new £15 million leisure quarter has also significantly contributed to the centre's rising footfall, with the wider redevelopment adding over 300,000 sq ft of new and upgraded space.
The expansive 92-acre site is not only home to the main shopping centre but also includes a fully-let retail park. Demonstrating a commitment to sustainability, Merry Hill has also implemented significant environmental upgrades, featuring 2,700 solar panels that generate 25% of its electricity consumption and over 100 electric vehicle charging points for visitors.
In a statement, the Merry Hill board underscored the centre’s remarkable transformation: “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.”
The sale comes at a time when the UK mall sector, particularly within the Midlands region, is showing significant vibrancy. This was recently evidenced by property giant Hammerson’s announcement in July that it would acquire the remaining 50% stake in Birmingham’s iconic Bullring and Grand Central for a substantial £319 million cash, highlighting robust investor confidence in well-performing retail assets.
