Hammerson concludes disposal programme with £111m Union Square sale

Hammerson has agreed to a £111m sale of Union Square shopping centre in Aberdeen to an affiliate of Lone Star Real Estate Fund.

The sale of the 560,000 sq ft shopping centre is expected to complete in the first quarter of the financial year.

Hammerson said the sale price represents an 8% discount to the book value at the end of 2023 of £121m, and a net initial yield of 11%. The property developer added that the proceeds of the disposal will look to strengthen its balance sheet by reducing net debt and provide additional capacity for reinvestment into its core portfolio.

The sale of Union Square concludes Hammerson’s £500m non-core disposal programme, which it set out at the beginning of 2022.