ADIA Unit and property developer Grosvenor have sold 92% of their stake in the Liverpool ONE shopping center for $622 million
A company owned by Abu Dhabi Investment Authority (ADIA) and the British property developer Grosvenor have sold 92% of their shares in Liverpool ONE shopping center in the UK to Landsec for $621.8 million (£490 million).
Deal Details
A unit of the Abu Dhabi sovereign fund owned 69% of the shopping center, while the UK firm held 23%, according to a statement by Landsec on Tuesday.
As part of the payment, $44.4 million owed to ADIA will be delayed for two years. Landsec expects a 7.5% return on its initial $577.4 million investment.
“The center’s current rental income is 4% below its estimated rental value (ERV). With Landsec’s strong platform, brand relationships, and future ERV growth, rental income is expected to rise significantly in the coming years,” the statement said.
This purchase supports Landsec’s goal to invest more in major shopping areas, using money from its $588.8 million in non-core property sales earlier this year. With this deal, Landsec will now own and manage seven of the UK’s top 30 shopping centers.
Key Quotes
“The top 1% of shopping destinations in the UK account for 30% of all in-store retail spending. This is why brands focus on fewer, but larger and better stores in top locations,” said Landsec CEO Mark Allan.
“Liverpool ONE is an amazing destination. We are proud of what we’ve achieved with and for the City over the past 25 years. It’s not just a success story in regeneration but remains one of the UK’s best retail and leisure destinations,” said Grosvenor Property UK CEO James Raynor.
Liverpool ONE
Liverpool ONE is a large, modern shopping area in the UK that opened in 2008. It has shops, restaurants, and entertainment options, attracting 22 million visitors every year.
In the past year, sales have gone up by 5%. New rental agreements were signed at prices 10% higher than expected, and lease renewals were 5% higher than before. The area is 96% full, according to Landsec.
Published: 18th December 2024
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