After an 18-month long search, Aberdeen's iconic Union Square shopping centre has found a buyer: the American private equity firm Lone Star.
Negotiations are reportedly in an advanced phase, with Lone Star offering £110 mln (€129 mln) for the food and retail hub, falling short of the £150 mln (€176 mln) initially sought by owner Hammerson.
News of the potential sale first broke in 2022, and previous talks with real estate giant Brookfield to buy the shopping centre for £140 mln (€164 mln) fell through. Sources suggest the purchase price reflects a 12% yield, translating to annual rents of roughly £13 mln (€15 mln) for Union Square.
With NatWest expected to co-fund the deal, Dallas-based Lone Star is poised to add this 51,700 m2 landmark property to its portfolio.
Aberdeen’s biggest shopping centre opened in October 2009 and cost £275 mln (€322 mln) to build.
It is home to more than 50 iconic brands and high-street favourites including Apple, H&M, Zara, Lush, and Jo Malone. The destination also houses more than 30 restaurants and a 2,400-seat cinema.
With an annual footfall of 14.6 million, Union Square is located in the heart of the city, right next to the central railway and bus stations.
Union Square's potential sale to Lone Star adds to a growing trend of American investment in Aberdeen's real estate scene. California-based Realty Income Corporation (RIC) acquired Beach Boulevard Retail Park, Garthdee Retail Park, and Berryden Retail Park.
