Aberdeen’s Union Square changes hands in £111 million deal

Aberdeen's Union Square changes hands in £111 million deal

The Union Square shopping centre (credit: Hammerson)

Aberdeen shopping centre and leisure complex Union Square is set to change ownership in an investment deal worth £111 million.

The deal has been sealed by UK-listed retail property giant Hammerson, with completion expected by the end of the first quarter of 2024.

The transaction, representing an 8% discount to the book value of £121m as of December 2023, reflects a net initial yield of 11%. The buyer is an affiliate of US investor Lone Star Real Estate Fund VI.

Hammerson highlighted in a statement that the proceeds from the sale will bolster its balance sheet by reducing net debt, providing additional capacity for reinvestment into the core portfolio.

This sale marks the conclusion of Hammerson’s £500m non-core disposal programme, initially outlined at the start of 2022.

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