Liverpool ONE is credited with transforming Liverpool city centre
Liverpool ONE has been sold to a London-based property company in a massive multi-million pound deal. Real estate investors at Landsec today announced their newly-acquired 92% stake in the city centre site.
The majority stake was purchased from the Abu Dhabi Investment Authority, which held 69% of Liverpool ONE, and Grosvenor, which held 23%, for an overall consideration of £490m. Of this total consideration, a payment of £35m to ADIA is deferred for two years.
Landsec CEO Mark Allan said: “The top 1% of the UK’s shopping destinations provide brands with access to 30% of all in-store retail spend, which is why we continue to see brands focus on fewer, but bigger and better stores in the best locations. As such I am delighted that we have added another top-ten centre with a highly attractive return profile – meaning our unique portfolio now includes seven of the top 30 centres in the UK.
READ MORE: Dad and daughter cry in the dock as they’re jailed for their crimesREAD MORE: Woman kicked off GP list after begging for help diagnosed with incurable cancer
“Liverpool ONE already has a great line-up of brands in a thriving location and we look forward to building on this with our leading operating platform to further add to its exciting growth story.”
The acquisition of Liverpool ONE is in-line with Landsec’s objective to grow its investment in major retail destinations, recycling the proceeds from its £464m of non-core sales earlier in the year. This means the company now owns seven of the top 30 shopping centres in the UK, including Bluewater, Westgate and St David’s.
Opened in 2008, Liverpool ONE is the largest open-air shopping centre in the country, attracting 22m people each year. Retail sales have grown by 5% over the past 12 months, with new leases signed 10% above the estimated rental value, re-lettings and renewals 5% above previous passing rent, and overall occupancy of 96%.
Grosvenor Property UK CEO James Raynor said: “Liverpool ONE is a phenomenal destination and we’re incredibly proud of what we’ve accomplished with and for the City over the last 25 years. It’s not only one of the most remarkable regeneration stories, re-defining what long-term investment and partnership can achieve, it continues to be one of the UK’s most successful retail and leisure destinations. And, under the unified ownership and management of Landsec, we know it will continue to thrive.
“Looking ahead, we have ambitious plans to grow and diversify the business and we will reinvest the proceeds from the sale in our core portfolio including our 10-year programme of investment in London and residential debt business, which has supported the delivery of 3,370 homes in just 2 years.”
