Hammerson to sell Aberdeen shopping centre for £111m

Hammerson said on Monday that it has agreed the sale of Aberdeen shopping centre Union Square to an affiliate of Lone Star Real Estate Fund VI for £111m in cash.

Completion of the sale of the 52,000m centre is expected to occur in the first quarter of this year.

The price represents an 8% discount to 31 December 2023 book value of £121m and a net initial yield of 11%.

Proceeds from the disposal will further strengthen the balance sheet by reducing net debt and provide additional capacity for reinvestment into the core portfolio, Hammerson said.

"As part of Hammerson's strategic re-alignment of its portfolio, the sale of Union Square concludes the £500m non-core disposal programme, as outlined at the start of 2022," it added.