Lone Star Funds is seeking around £175 million for Aberdeen’s Union Square, with Knight Frank appointed to market the shopping centre.
The 550,000 sq ft property includes an enclosed retail and leisure mall and an adjoining retail park, next to the city’s railway and bus stations. The sale process was announced on Knight Frank’s website on 17 September.
The property adviser said recent lettings and retailer expansions had contributed to a 22% increase in net income over the past 36 months.
Marks & Spencer has expanded into a 100,000 sq ft flagship unit on the retail park. TK Maxx and Apple have also increased their space, while new lettings include Ikea, Mango, Schuh, Victoria’s Secret, Hobbs, The Entertainer and Wing Stop.
Charlie Barke, head of capital markets at Knight Frank, said: “Union Square is a huge success story and its recent lettings, substantial tenant investment, rental trajectory and strong trading platform are exactly what you want to see from a thriving retail asset with strong sustainability credentials.”
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Developed in 2009, Union Square also houses JD and Next in its retail park, with Zara, H&M and Cineworld among the mall’s operators.
The £175 million figure is an indicative asking price, rather than an agreed sale value. The announcement did not identify a buyer or give a timetable for completing a transaction.
