Hammerson has agreed a deal to sell Union Square shopping centre in Aberdeen to Lone Star for £111m.
The sale price represents an 8% discount to the centre’s 31 December 2023 book value of £121m and a net initial yield of 11%.
Hammerson is selling the 52,000 sq m (circa 560,000 sq ft) shopping centre to an affiliate of Lone Star Real Estate Fund VI, LP. The deal is expected to complete in Q1 2024.
The sale of Union Square concludes Hammerson’s £500m non-core disposal programme outlined at the start of 2022 and the strategic re-alignment of its portfolio.
The company said the proceeds of the disposal “will further strengthen the balance sheet by reducing net debt and provide additional capacity for reinvestment into the core portfolio”.
